November 2018 saw global oil prices down by 20% or so – the biggest monthly slide in more than 10 years.
Cornelia Meyer, chief executive of Meyer Resources, told the Today Programme that “a month ago everyone was pumping oil as hard as they could because of worries about the Iran sanctions but then there were exceptions of Iran’s eight biggest customers
“That led to excess oil in the market.” So there was essentially too much supply and not enough demand.
It will be very interesting to see what happens to oil prices now. Current market data suggests we may see prices rising again.
This control in production has recently brought OPEC some criticism, especially by President Trump. Recently he tweeted, “Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!
BBC reported yesterday “Saudi Arabia argues that output needs to be trimmed because it fears that otherwise prices could fall further next year due to a predicted slowing in demand for oil.” “So despite President Trump’s tweets, Opec is widely predicted to announce a production cut, if only a small one, to try to raise global oil prices.”
What action can we take right now whilst we wait to see how the market moves?
Take advantage of the lower prices today by making sure you have enough oil to see you through the winter!
Get in touch with any oil tank requirements or tank replacement or repair projects! We will be happy to help.
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