Brent crude surpasses $75 for the first time since October 2018

  • by Ahmed Mamdouh
  • April 25, 2019, 14:16 AM
  • 228 Views
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Brent crude surpassed $75 a barrel for the first time since October 2018 on Thursday after tightening sanctions on Iran have threatened the supply of crude in markets, while US crude oil gains stalled due to the surge in US production.

What is Brent crude?

Brent crude or Brent is one of the light crude oils used in the pricing of two-thirds of the world's oil production and traded in the markets of Europe and Africa, always higher than the price of the OPEC oil basket and US crude oil prices.

Brent crude symbol

Brent crude is traded on the London Stock Exchange with the symbol of (LCO) and the active forward contract.

Brent crude price

Brent crude futures rose to a record high of $75.39 a barrel in 2019, recording a 4.9 percent rise to $74.46 a barrel on Thursday.

Reasons for Brent crude rally

The price of Brent crude has found support today after the suspension of oil exports from Russia to Poland and Germany through the pipeline connecting them due to problems related to quality, in addition to the announcement by the United States to end any exemption to sanctions imposed on Iran.

The U.S. called countries to stop importing oil from Iran and threatened to impose sanctions on countries that violate.

This caused the price of Brent crude to rise because of expectations of weak crude supply in the markets, prompting analysts to raise their year-end forecast for the price of Brent crude to $60 a barrel instead of $50 a barrel.

On the other hand, there are expectations of a general decline in crude oil prices during this year due to the slowdown in global economy growth that would yield in weaker demand for crude oil, besides the increasing production from the United States and the flight of investors from investing in risky assets.

When talking about the supply, the U.S. has increased its daily production of crude oil by 2 million barrels since the beginning of 2018, bringing the total production today to 12.2 million barrels to become the world’s biggest producer ahead of Russia and Saudi Arabia.

US Crude Oil Prices

US crude oil prices settled above $66 a barrel on Thursday, after hitting its highest level since October 2018 on Tuesday. Prices are currently trading at $66.10 a barrel.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at Ofeed.com, with 11 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from the American University in Cairo and a Bachelor Degree in Economics from the Faculty of Economics and Political Science, Cairo University.

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