Oil: US Sanctions against Venezuela and Iran, will help boost prices
The price of oil on Thursday March 7 to 16.57 GMT. increased by 1.1% to 66,69 dollars per barrel.
The market of “black gold” continues to grow and returns to the area of the highs from November, amid a decline in oil supplies from Venezuela and Iran because of U.S. sanctions against those countries.
In particular, the us Department of energy estimate that Venezuelan oil supplies to the country for the week ended March 1 fell 2.5 times to 83 thousand barrels of oil per day. The week before oil supplies from Venezuela fell by almost three times.
While India is negotiating with the United States on the extension of the exceptions to the anti-Iran sanctions. Sanctions against the Islamic Republic came into force on 5 November last year, however, China, India, Italy, Greece, Japan, South Korea, Taiwan and Turkey have been granted temporary exceptions to the oil sanctions for 180 days, and to renew them is not planned. Against this background, the volume of oil supplies from Iran to India in January dropped 45% yoy and 10.4% mom to 270 thousand barrels per day.
Meanwhile, the number of active drilling rigs for oil and gas production worldwide rose in February on a monthly basis, on 41 share (1.8 percent) to 2,306 thousand units. The main contribution thus made Canada. In the Asia-Pacific region had opened eight new drilling rigs (an increase of 3.4% to 240), in Africa, four (3.7% to 113).
The pair Euro-dollar fell under pressure and dropped below the level of 1.13. Negative background for the Euro has created the ECB’s decision on monetary policy (DCT).
The regulator on Thursday kept its benchmark interest rate at a record low level of 0%. The Deposit rate remained negative at the level of -0.4 per cent per annum, and the marginal rate remains at 0.25% per annum. The ECB decision coincided with forecasts of experts.
In addition, the regulator in September 2019 will launch a new program of long-term lending (TLTRO-III). Credits will be issued for a period of two years. Mitigation DCT is performed on the background of lowering the ECB’s forecasts of GDP growth and inflation in the Euro area in the coming years. Price growth this year will slow to 1.2% from 1.6%, in 2020 – up to 1.5% from 1.7% in 2021 – up to 1.6% from 1.8%. The growth of GDP will fall to 1.1% from 1.7%, in 2020 – up to 1.6% from 1.7%. Forecast price growth to 2021 remained at 1.5%.
In the end, to 16.55 GMT. the Euro was down 0.5% from the start of trading on the last fixing and was 1,1257 of the dollar, the lowest level since mid-February.
GK Forex Club