Mubasher: Oil prices surged in the first quarter of 2019, recording its highest levels in 10 years, pushed up by output cuts by OPEC+ and the political turmoil threatening some oil producers.
Prices are expected to increase in the second and third quarter of 2019, according to a report released on Wednesday by National Bank of Kuwait (NBK).
“The possible non-renewal of the 180-day US sanctions waivers on Iran expiring in early May will have a significant impact on oil markets, with a potential reduction in the supply of several thousand barrels,” NBK’s group chief economist Saade Chami, commented.
OPEC’s aggregate production fell 812,000 barrels per day in February, as compliance reached 106%.
The political conflicts in Venezuela and Libya, in addition to the US sanctions against Iran, had a negative impact on the three major oil producers.
“Downside risks to oil prices could include greater-than-expected US shale-led supply gains; termination of the OPEC+ supply agreement in June, or under-compliance by a few members; and a further weakening of global economic growth,” NBK’s report revealed.
