Oil prices break protocol to rise despite failed Doha meeting

Discussion in 'CFDs' started by Profiforex_Victory, Apr 19, 2016.

  1. Profiforex_Victory

    Profiforex_Victory Новичок

    On Tuesday, we saw a hike in oil prices as oil workers in Kuwait continued their strike. The strike has slashed oil output from Kuwait into two thus pushing oil prices up as the amount of oil in circulation globally on a daily basis is now reduced. The rise in oil prices caused by this strike is a whole different situation for what investors expected this week. Investors were generally expecting long slides in oil prices owing to the failed Doha meeting.

    The protest in Kuwait from the nation's oil workers has entered its third day. This reduced crude output to 1.5m bpd for Kuwait. Prior to the strike, Kuwait produces a daily capacity twice of this.

    Iran insistence to increase production was partly responsible for the failed Doha meeting. Rokneddin Javadi, Iran's Deputy Oil Minister announced on Tuesday that crude production could get up to that planned capacity by the middle of June this year.

    Brent oil traded at $43.34 for one barrel, this is about a climb of 43 cents from what olu finished at on Monday. US crude on the other hand went up to $40.09 for a barrel.

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