Crude oil futures rose more than 2% during trading on Tuesday, February 12, amid production cuts in the OPEC and the intentions of Saudi Arabia to exceed plan and sanctions against Iran and Venezuela, according to Reuters.
In particular, the Brent crude rose by 2.83% to $63,25 per barrel. Futures on American WTI was trading at $53,97 per barrel by 2.98% above the previous close.
The market has a reduction in oil production, which in December agreed OPEC and some countries outside the organization for the recovery of the market.
Saudi Arabia, the leading oil exporter in the world and de facto leader of OPEC, said that production will decrease in March to about 9.8 million barrels per day, more than half exceed the originally promised level of reductions. This was stated by Minister of energy Khalid al-falih in an interview with Financial Times published on Tuesday.
At the same time, the growth of oil production in the United States, sanctions against Venezuela and the uncertainty around Iranian oil imports cause market participants to experience uncertainty about supply.
As reported, OPEC on Tuesday, February 12, lowered its forecast for global oil demand in 2019 against the backdrop of slowing global economy and expectations of more rapid growth in supply from competitors that highlights the difficulties faced by the organization in an attempt to prevent a glut on the market.