Oil Gains 48% since December 2018 – Weakness Ahead?

  • Written by News Company

In line with the US stock market performance, the price of oil bottomed on December 26th, 2018, and since then it managed to recover by almost 50%, with no sign of weakness showing thus far on the West Texas Oil (WTI).

Sanctions on Iran back in place

About a year ago, the US decided to get out of the Iran Deal, and put sanctions again on the country, as Donald Trump claimed: “it was the worst deal ever made”. Despite all the sanctions put back into place, Iran had not thus far shown any sign it is willing to get to the negotiations table with the US.

As a result, the country is struggling to sell its oil and is peddling a million barrels of oil, according to a recent Bloomberg article. Since traders are able to invest in oil with instruments like FXVC oil CFDs, the price had been steadily climbing from $42 per barrel to $63 dollars per barrel.

Blocking Iran’s oil was a weird move from the US President, considering that he was advocating for lower oil prices. By imposing sanctions on Iran’s oil he reduced the global supply, which had pushed prices higher. Stronger ties with Saudi Arabia seem to be behind the decision, as Iran is its most important competitor in the Middle East.

OPEC extends cuts

The second significant reason why the WTI price went up has to do with OPEC’s and Russia’s decision to extend the daily production cut until June 2019. The consortium widely-known as OPEC+ agreed on a cut of 1.2 million barrels per day, a move following an announcement that some Iranian oil importers will be exempted from the US sanctions. Japan, China, Turkey, India,

With oil approaching fast the $40 level, the only choice for OPEC was to cut production and they move had managed to stabilize the market at much higher levels. So far, the US had increased its inventories in order to counteract OPEC’s move and in order to gain more market share.

It will be interesting to see whether the US President will take further measures to reduce the upside in the oil price. Also, it will be important to watch how the global economy will perform throughout the year. A better-than-expected performance will further support oil, while on the other hand, signs of an economic contraction will begin to weigh heavily.

News Reports


Don’t you think technology has been beneficial? Even in academia, technology is doing wonders for the benefit of students and teachers. It has come up with the idea of online classes to promote fl...

News Company - avatar News Company

5 great ideas for your wedding event

Every couple is looking for ways to make their big day - THE WEDDING DAY, fun and memorable one. For this purpose, special and unexpected activities are planned to create an AH-HA moment for both th...

News Company - avatar News Company


WHAT IS INCUBATION? This term refers to the natural process that birds perform when hatching their eggs to develop offspring of birds and reptiles. Currently, this process can be done by specialize...

News Company - avatar News Company

The best wedding venues of 2020

Are you worried related to the wedding venue? So stop worrying we have shortlisted some best wedding venues all around the world. If there are enough places on this list to show that the world is re...

News Company - avatar News Company

Things you should consider for your school going kid

As a parent, you have to teach your child the ways of life. Just like a school has a teacher, you are your kid’s teacher at home. The best way would be to get involved with your kid’s school. Ki...

News Company - avatar News Company

Do Not Forget These Things When Leaving For Work

On average, we spend roughly about 90000 hours performing our professional duties. That’s a staggering amount of time. That said, not all of us make the most of these hours in spite of being well-...

News Company - avatar News Company

What to Expect from a Disability Employment Service

Are you someone dealing with a disability and looking for the right employment for yourself? Or finding the right kind of work for your loved one with a disability? Disability Employment Services (...

News Company - avatar News Company

How to Do the Laundry in Ten Easy Steps

Learning how to do your laundry is not a daunting task. It is a great life skill to have. With the advancement in technology, machines nowadays make it simple and easy for you to do your laundry. Si...

News Company - avatar News Company

Health & Wellness

Dietary Changes to Manage High Blood Pressure

Dr Felix - avatar Dr Felix

High blood pressure is often called the silent killer since it quietly damages blood vessels but usually produces no symptoms until it has already caused severe health problems. Fortunately, med...

What to Consider When Buying Pre-Workout Supplements

News Company - avatar News Company

Every serious trainer knows the importance of using pre-training supplements. These products improve endurance, enhance focus, and promote muscle development. This explains why they are gaining tracti...

Treatment Options Available for Eye Floaters

Julian Carter - avatar Julian Carter

Have you experienced seeing shadows in your field of vision? They may look like tiny dots or string-like cobwebs that tend to disappear once you try to strain your eyesight. These irritating obs...

4 Ways To Deal With Anxiety at Home During Lockdown

News Company - avatar News Company

Having encapsulated the lives of more than 3 million people across the world, COVID 19 is having a major moment right now. Especially ever since the lockdown was initiated a few weeks back, a lo...

News Company Media Core

Content & Technology Connecting Global Audiences

More Information - Less Opinion