7 Things Currently Driving The Price Of Oil Higher
Ellen Wald | Jul 11, 2018 06:13
Despite decisions by Saudi Arabia to quickly ramp up production, oil markets continue to be overwhelmed by news of worker strikes and production outages. That, of course, is bullish for the price of oil.
Despite US President Donald Trump's call for increased production in order to lower prices, markets are likely heading the other way. Here's a rundown of 7 regional events and why they'll propel oil higher.
h2 1. Norway/h2Oil and gas workers on Norway’s offshore rigs voted to go on strike after rejecting a wage deal. At least one oil field hoping that new investment from China in its Orinoco Belt region will help lift oil production soon. However, even if production grows in that region, it will barely offset expected declines in production from Venezuela’s other oil producing regions.
In late June, President Trump called for increased production in order to lower prices and Russia and Saudi Arabia have indeed been increasing their own production. Still, all of the above factors are offsetting increased production. This is why, at least for now, prices won't be dropping.
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