TAIPEI, Taiwan–(BUSINESS WIRE)–Everitt
Lawson Group has commented, saying that due to a record breaking
production of crude oil in the Untied States, it has led Oil prices to
fall over the last few days.
Analysts from Everitt
Lawson Group noted that spot Brent crude oil futures stood at around
$71.81 U.S. Dollars per barrel, around fifty basis points lower then its
last close.
Oil markets as a whole remain tense due to the ongoing U.S. sanctions on
Iran combined with a political crisis in Venezuela, which is in the top
ten countries of highest producers of Oil.
“Simply put, Crude oil prices have fallen due to the stockpiles in the
U.S. increase to their highest levels. When demand decreases and supply
is high, the price will generally fall flat and lower,” commented David
Armitage, Director of Institutional Trading at Everitt
Lawson Group.
Stockpiles in the U.S. currently stand at 470 barrels while production
set a high of around 12.4 million barrels per day (bpd). OPEC members
are reluctant to withhold supply so that it can increase the market
price.
The current situation in Venezuela will be the most pressing matter in
regards to upcoming OPEC meetings to discuss the amount needed to fill
the expanding supply.
“Reports on the largest listed oil and gas companies showed that
industry margins have increased by over 200 percent in 2018 alone. The
current estimates of global marginal costs of oil do remain steady at
around $71 per barrel,” added Andrew Bale, Head of Corporate Equity at Everitt
Lawson Group.
About Everitt Lawson Group
Everitt Lawson Group is a Taipei, Taiwan-based, pure-play boutique
investment management house with a strong record of delivering
impressive investment returns to private and institutional clients
around the world.
Contacts
Media Contact
Phil Willis, Head of Marketing, Everitt Lawson
Group,
+886 2 7741 7927, [email protected]
