The oil prices have extended the advance from the low month of October as the OPEC and their allies have pledged to take the additional steps for balancing the energy market.
The oil price had cleared the high of the last month which was at $58.74 as the Crude inventories in the United States saw a fall which was beyond the expectations in the last week of the month of November and the prices of energy may be staying afloat as 2020 approaches with OPEC and their allies being committed toward the rebalancing of markets.
The stockpiles of oil in the United States have fallen by 4856k in the week which ended on the 29th of November as against the expectations of a decline of 1500K to mark its biggest contraction after September.
However, upon looking at it in detail, a report has showed that the output of crude is sitting at a record high and the production of oil is holding up steady at a level of 12,900K for the second week running.
In their response, OPEC and their allies have arrived at a broader agreement for reducing the production of crude by further 500k barrels in a day till March of 2020 and this group might continue its emphasis on the commitment toward making efforts to keep prices of oil afloat.
However, the jury is still out on whether the allies of OPEC and OPEC are going to take further measures in the upcoming months in the wake of the production expansion in the United States. The developments which come from the United States are going to play a big role in how the largest economy in the world may not be playing a big role in the oil prices being driven as the administration of Trump is planning for an increased amount of tariffs on Chinese goods.
Charles is a Chief Marketing Manager at our company. He is good at content marketing, his job duties include all social media-related marketing, blogging, and publishing related operations. Charles is with us from last 5 Years and has pursued a post-graduate diploma in marketing management. In his free time, he guides team-mates regarding business and share thoughts on media-related content.