Cuts in OPEC and US sanctions in the headlines

Oil prices fell from the peaks reached in 2019 on Friday, as worries about economic growth weighed on investor sentiment, marking the end of a three-month rally motivated by price cuts. Offer driven by OPEC and US sanctions against Iran and Venezuela.

Brent crude futures were at $ 67.72 per barrel at 4:19 GMT, down 14 cents (0.2%) from their last close. Brent hit a four-month high of $ 68.69 a barrel the day before.

West Texas Intermediate (WTI) futures in the United States were $ 59.84 per barrel, 14 cents lower than their latest settlement. WTI also hit a peak of 2019 at $ 60.39 the day before.

"Global economic growth remains a concern," said Sukrit Vijayakar, director of the Trifecta Energy Council.

Economic growth has slowed in Asia, Europe and North America, which could reduce fuel consumption.

Oil prices this year have been supported by supply cuts from the Organization of Petroleum Exporting Countries (OPEC) and unaffiliated allies such as Russia, often referred to as "OPEC +" .

Canadian investment bank RBC Capital Markets said oil was "still below the financial breakeven of several OPEC countries", which means that many producers have every interest in further supporting the market.

"With the OPEC bus driver, Saudi Arabia, showing no sign of stability in the face of renewed pressure from Washington, we believe that OPEC is likely to prolong the operation." agree for the duration of 2019 at their next rally in Vienna in June, "RBC said.

According to RBC, Russia is only a reluctant partner in reducing supply, but "would finally opt to preserve the agreement and maintain the leadership role of a group of 21 countries representing about 45 percent of world oil production ".

Beyond the supply policy of OPEC and Russia, oil prices have also been boosted by US sanctions imposed on Iran and Venezuela, members of the United States. ; OPEC.

Iran's crude oil shipments averaged just over one million bpd in March, up from 1.3 million bpd in February and a peak of at least 2.5 million bpd in 2018, before the announcement of US sanctions.

Venezuelan crude oil production also declined with US sanctions and an internal political and economic crisis, rising from a peak of more than 3 million barrels a day at the turn of the century to just over a million barrels per barrel. day.

Price increases were also held back by a jump of more than 2 million bpd in US crude oil production since the beginning of 2018, reaching a record 12.1 million bpd, making the United States the world's largest producer before Russia and Saudi Arabia.

The rise in US production has led to an increase in exports, which doubled in the last year to more than 3 million bpd.

The International Energy Agency (IEA) estimated that the United States would become a net exporter of crude oil by 2021.