Oil Supply Grows Amidst Iran Sanctions

Oil and Gas

The global supply of crude increased significantly in the course of the year amidst the threat of a potential rise in crude oil price when the US backed out of the Iran Nuclear deal and announced new sanctions on Iran. Before the announcement, global oil price was hovering around $76, however sporadic production from Saudi Arabia and non-OPEC members with United States and Russia leading the trail, helped curtail a sporadic hike in crude oil price. According to the International Energy Agency, crude oil supply increased from an average of 98.34mb/d in the first quarter of 2018, to 100.74 mb/d in the third quarter of 2018. Production from OPEC members was relatively stable in the course of the year, beside The price of Brent crude oil  increased to a four-year of $86/bbl in October 2018, and because of the  increased production, it declined below $70/bbl by mid-November.

The flag of United States of America and Russia. Source: alamy

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