WTI crude oil the highest since the beginning of the year. The price has exceeded 58 $ per barrel

The West Texas Intermediate barrel in deliveries announced for April at the NYMEX fuel exchange in New York is already priced above 58 USD. This is the highest level since November 2018 year. Taking into account 3 last sessions, in total it grew by around 3,9%.

WTI oil chart, H4 interval, source: XTB xStation

The International Energy Agency points to increased demand

Oil prices have been maximizing them, supported by IEA forecasts. They indicate a significant deficit of this raw material in the second quarter of the year. According to the agency, a small surplus may occur in the first quarter. However, this does not have much significance for quotations in a later period. In the next scenario there is a scenario of a drop of 0,5 million barrels per day.

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OPEC support for further oil rises

The countries of the OPEC + coalition are intensively discussing the proposal for prolonging oil cuts by OPEC producers presented by Saudi Arabia. The concern and its allies are to implement changes in the second half of 2019. On the basis of the December 2018 agreement, OPEC + agreed cuts in the first half of this year. The final decision in this matter is most likely to be made in April. The fall in crude oil stocks was rather a surprise, hence it is pulling the price of this raw material up. If we look more closely at the fuel market, the increase in reserves was only observed in the case of distilled fuels, including fuel oil.

Brexit and the mood in the global economy

Uncertainties in the world economy were resolved yesterday with the vote in the UK on leaving the EU without a deal. Speculation about a possible postponement of the "divorce" eased the mood in the market somewhat. Although Brexit does not have such a direct impact on oil prices as OPEC, tensions over the lack of a deal had a negative impact on the world economy, creating additional uncertainty and a lack of a sense of stability in the markets.