Global Crude Oil Predicted to Stay Below US $ 70 per Bare

INDUSTRY.co.id - Jakarta - The price of crude oil in global markets is expected to remain below US $ 70 per barrel until 2019. That's because of the continuing supply abundant in the world oil market.

In his research note, Tuesday (03/04/2018), Indo Premier Security’s analyst team, explained, the opinion was raised to respond to various data and the development of global petroleum policy.

As is known, Russia's oil production volume in March 2018 increased to 10.97 million barrels per day (bpd) despite an agreement on production restrictions with OPEC. In February 2018, the production volume of the country's iron curtain was 10.95 million bpd.

Along with that, as reported by CNBC, Saudi Arabia as the largest crude oil exporter is predicted to cut prices of all types of oil sold in Asia in May, in line with the decline in Dubai crude oil prices.

Meanwhile, Iraq as OPEC's second largest producer also produces crude oil that exceeds the agreement of 5 million bpd by early 2018 compared to 4.4 million bpd as agreed by OPEC.

In fact, on Monday, the Iraqi parliament plans to raise production capacity to 6.5 million bpd by 2022. Therefore, crude oil prices will remain below $ 70 per barrel in 2018-2019 due to an abundant supply. (Abraham Sihombing)