January 18, 2021

The price of oil drops more than 2% due to data from OPEC and Hurricane Michael

The price of oil drops more than 2% due to data from OPEC and Hurricane Michael


Specifically, the barrel of Brent, of reference for Europe, has fallen by 2.36%, to $ 80.9 per barrel, reaching a minimum since September 24, when it began an upward path that pushed the price to overcome the 86.5 dollars.

For its part, the West Texas Intermediate barrel, a reference for the United States, has fallen by 2.24% to 71.6 dollars per barrel. US crude has behaved in the same way, falling back to the figures of two weeks ago and away from the highs of 76.7 dollars reached on October 3.

The market has thus responded to production increases in Saudi Arabia, which pumped 100,000 more barrels per day in September compared to August, according to the OPEC monthly oil report. Libya was in second place, after increasing production by 103,000 barrels.

These two countries have compensated for the fall in production in Iran, which in September pumped 150,000 barrels less as a result of pressure from Donald Trump. For its part, the economic collapse of Venezuela has also affected its oil production. In the ninth month of the year, the Bolivarian country produced 42,000 barrels less, up to a total of 1,197 million, a figure that is almost one million below the average daily production of 2016.

Likewise, the global supply of 'black gold' has also been affected because several oil companies have had to evacuate these days all the personnel of the oil platforms located in the Gulf of Mexico by the passage of Hurricane Michael.

The analysts of the Swiss bank Julius Baer have estimated that, despite the uncertainty generated by the oil embargo on Iran, the increased production of the oil countries and the lower demand of the emerging countries "should help to keep the oil market balanced" .

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