Oil prices began to decline because of events in Venezuela

According to the stock tradings, the cost of North Sea Brent oil on the morning of January 28, 2019 dropped below $61 per barrel. As of 09:36, Kyiv time, the price of a barrel of Brent oil was $60.91. This is 0.52% lower the closing level of previous trading.

The decline in oil prices occurred on the background of the news that Venezuela canceled its decision about the break of diplomatic ties with the United States. This news becalmed investors. The crisis in the political situation in Venezuela has a moderate effect on oil prices due to fears of a reduction in supply to the world market.

Last week, oil service company Baker Hughes released the information that the number of existing drilling rigs in the United States increased by 10 units, up to 862 units. This is the first increase in indicators since the beginning of the year, it indicates a further increase in oil production in the United States. Baker Hughes has been counting the number of rigs since 1944. Based on this indicator, experts predict the supply and demand in the energy sector, the level of oil prices on a local and global scale at the level of the oil market.


Source: rbc.ua

Tags: oil

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