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Brent crude fell to $65.07 per barrel and WTI dropped to $55.80 at the close of the week. due to a third consecutive month of weak Chinese exports. and US crude imports reaching their lowest levels in 23 years. US plans to sell up to 6 million barrels of crude oil from the Strategic Petroleum Reserve in April and May exacerbated bearish sentiments. but OPEC output cuts have. to now. kept the market stagnant. This prompted US President Donald Trump to address the group for the first time this year on Twitter. saying: “Oil prices getting too high. OPEC. please relax and take it easy. World cannot take a price hike — fragile!“ For context. when the president began tweeting about OPEC in March 2018. Brent crude was priced between $75 to $85 per barrel. Now. having started 2019 at below $55. the price is hovering in the mid 60s. more than $20 under last year’s high point. The cause of fluctuations in the price of Brent crude. however. has little to do with OPEC and more to do with the waiving of oil sanctions placed by the US on Iran. Brent reached its highest level. $86 per barrel. in October 2018. days before waivers were granted to Iran’s largest crude oil importers. leading to prices plummeting to $55 and remaining in a narrow range throughout 2019. This has only been accentuated by US production ever since. In fact. OPEC’s influence in the price movement has been negligible. Efforts to inflate prices have had little effect. but Saudi Arabia. Russia and other members continue to drive OPEC output cuts to counter the wave of supplies from the US shale gas and crude industries. Output for the latter hit a record high of over 12 million barrels per day (bpd) last month. pushing exports to an unprecedented 3.6 million bpd for February.
