Wainwright Marks Management - Oil Prices Continue to Rise
April 05, 2019 Business News(PRLEAP.COM) Oil prices continued to rise this week as money managers remained bullish on oil prices prompted by indications that US shale growth is beginning to wane. Analysts at Wainwright Marks Management say the world's oil market is tightening and demand for oil will likely be strong over the next few months.
US oil production stalled as oil prices dipped towards the end of last year, easing concerns that US oil could flood the market and offset the production cuts implemented by OPEC (Organization of the Petroleum Exporting Countries) and its allies. There has been a significant decline in US drilling activity since the beginning of 2019.
Even though American oil inventories increased unexpectedly last week, oil prices increased for the fourth consecutive day this week, causing Brent Crude to reach an almost five month-high of close to $70 a barrel.
Wainwright Marks Management analysts say OPEC's production cuts have gone a long way to supporting oil prices for most of this year. OPEC has agreed to cut production by 1.2 million barrels per day for the duration of 2019.
Saudi Arabia has led OPEC in reducing production to offset the rapidly growing production of US shale.
Iran and Venezuela have also drastically reduced their output amid sanctions from the US.
Wainwright Marks Management analysts say fewer concerns about the state of the global economy have also contributed to the rise in oil prices.