In the early morning of the 3rd Beijing time, crude oil futures prices hit a new high of 2019 on Tuesday, with Brent crude oil approaching the $70 threshold. Iran will face more sanctions and the prospect of Venezuelan crude oil production being disrupted, which strengthens the effect of OPEC’s action to reduce production on oil prices.
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Brent crude oil futures rose 41 cents, or 0.6%, to $69.42, the highest level since November 13.
WTI crude oil futures rose 99 cents, or 1.6%, to close at $62.58, the highest level since November 7.
Jim Ritterbusch, president of Ritterbusch and Associates, said: “Today’s WTI crude oil and Brent crude oil have reached new highs in more than a month. Oil prices have risen more than we expected. Oil prices are bullish. Although we still maintain the price target of $62 for WTI crude oil, we cautiously advise investors not to cash in prematurely in view of the sudden momentum of recent oil price increases.
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A U.S. official said the United States was considering more sanctions against Iran. Iran is the fourth largest oil producer of the Organization of Petroleum Exporting Countries (OPEC).
Meanwhile, in Venezuela, an oil producer also subject to U.S. sanctions, a crude oil terminal was suspended due to power failure.
The disruption of crude oil supplies in Iran and Venezuela further strengthens the effect of OPEC-led production cuts. According to a Reuters survey, OPEC’s crude oil production fell to its lowest level in four years in March this year, mainly due to non-active production cuts and the fact that Saudi Arabia, the organization’s largest oil producer, has cut its output more than expected.
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