Oil prices rise after OPEC cuts, US sanctions on Iran, Venezuela

Oil prices rose yesterday thanks to the cuts led by the Organisation of the Petroleum Exporting Countries (OPEC), as well as US sanctions imposed on Iran and Venezuela.

Global benchmark Brent settled at $71.07 a barrel, up 18 cents or 0.3 per cent compared to previous figures, Addustor newspaper reported yesterday. West Texas Intermediate (WTI) crude rose by 46 cents or 0.4 per cent to settle at $63.84 a barrel.

RPC Capital Markets said it expected crude Brent and West Texas’ average price to be $75 and $67 per barrel until the end of this year, but indications are leaning towards a rise in prices.

The Canadian Central Bank said that the rising prices are fed by geopolitical factors and could bring prices to $80 per barrel or more.

Oil prices doubled on three occasions thanks to the cuts led by OPEC countries, US sanctions on Iran and Venezuela and the renewal of fighting in Libya.

Venezuelan production dropped due to US sanctions, which added to an already deep economic and political crisis in the country, while Iranian production is also expected to drop further as a result of the US sanctions which are to be tightened in May.

READ: Libya: Oil and gas production facing biggest threat since 2011