Our crude oil price analysis earlier in December needed an update after a sharp drop followed unrest in Iraq and uncertainty over the trade war. So after a week of waiting for the OPEC+ meeting, the crude oil price saw a significant jump due to the latest oil production cuts announced from Vienna on December 6th.
Namely, the oil price chart responded immediately to the OPEC+ decision to limit production to 500,000 bpd. The cuts are said to last until March of next year. But what surprised investors and what likely also had a big hand in influencing the oil price in December 2019 was Saudi Arabia’s announcement of even going beyond the agreed amount so as to defend oil prices.
On Friday, Energy Minister Prince Abdulaziz bin Salman said that Saudi Arabia would in fact maintain a voluntary cut of 400,000 bpd. Needless to say, this registered on the oil chart immediately. The statement was followed by a near-instant surge in the oil price chart analysis in December 2019. And further affecting the oil price forecast is the fact that the US has officially become a net petroleum exporter for the first time since 1973.
For comparison, only ten years ago, on a net basis, the US was importing 10 million bpd. The oil price technical analysis for September has seen the country has exported a total of 89,000 barrels of petroleum products.
Watch our full take on the oil price in 2019, and please give this video a thumbs up before you leave.
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