The oil price has risen sharply on Tuesday. The cartel OPEC anticipates a declining demand for crude oil, production also fell sharply last month. This follows from the figures published by OPEC on Tuesday. They lag behind previous estimates.
The demand for the past year has been adjusted downwards. Europe and the Asia-Pacific region expect a slowdown in growth.
Reuters reports that the Saudis will implement a production limit of 500,000 barrels per day in March. The Saudis would then not have 11 million barrels in November to the equivalent of 9.8 million barrels.
The total world demand in 2018 was 1.47 million barrels per day increase to 98.78 million barrels.
“The downward adjustment of growth is mainly due to lower economic expectations in 2019,” according to the cartel in his study.
At the same time, more and more traders are counting on a trade agreement between China and the US, which would immediately mean more demand.
This week, the members of the OPEC cartel are meeting to consider a further reduction of their production in order to raise the price.
Brent oil increased by 2.5% to just under $ 63 per barrel.
The oil price in this position still remains 28% below the four-year peak reached in October. Saudi Arabia has limited its production even further than previously promised, 10 million barrels per day.
The oil price may also have risen due to the news that Saudi Aramco, Saudi Arabia’s largest oil company, will invest billions more in exploration of gas and oil outside its borders. Venezuela announced that it would sell more oil to India.