Total US crude oil inventories increased by 3.8 million barrels last week
OPEC members Russia and Saudi Arabia are increasing their output. Both countries’ production levels stand at around 11 million barrels per day, similar to that of the US. Russia and other Middle Eastern countries are increasing their output to fill the upcoming gap which will be created by US sanctions on Iran.
Meanwhile, China, which is locked in a trade dispute with the US, has halted its purchase of US crude while also refusing to abide by the sanctions on Iran. This casts a shadow on long-term conditions. However, some analysts predict that the reduction in Iranian crude exports could cause a shortage in supply and send prices higher than $90 a barrel.
A combination of factors including decreases in Iranian oil exports, increases in OPEC oil production and the ongoing trade wars are contributing to a lot of uncertainty in the oil markets.