Oil prices decrease after OPEC is the excess of the production lifting plan

On Monday afternoon, oil prices fell to its lowest level in the year after OPEC Cartel, and its allies confirmed its plans to gradually increase crude production in April.

The opening of the taps in countries such as Saudi Arabia and Russia, which voluntarily strangled the supply of prices, increases the risk that the world will find itself soon with oil than it needs. The group said it would raise production by 2.2 million barrels per day, or about 2 percent of global demand, over several months.

This will be good news for consumers, who generally benefit when it costs less energy, but pressed the profits of oil producers, countries and countries in which they work.

US oil prices stabilized at $ 68.37 a barrel on Monday, a decrease of 2 percent. At this price, it is generally profitable to dig new wells in the United States, which produces more oil from any other country. Many wells are no longer profitable when it sells oil for $ 60 a barrel or less.

Opec Plus, the name used by the organization of oil -exporting countries and allies like Russia, was Saying since December A group of eight countries will begin to increase production in April. However, oil traders took these phrases with a grain of salt because the cartel Similar plans were delayed Several times last year, worried that the supply would exceed demand and oil prices decrease.

“The decision to move forward does not seem to be a gradual correction of production in response to the strongest demand for their barrels, but rather in response to the increase in political pressure, especially from the Trump administration,” Barkles analyst, Amarberret Singh, wrote, in a note of investors on Monday. He said this step by OPEC Plus was a surprise.

President Trump has a campaign to reduce energy prices by at least half, a goal that economists enjoy He said unrealistic. In January, he is He said that he will tend to the Kingdom of Saudi Arabia and OPEC To reduce the cost of oil.

He told the World Economic Forum: “You have to lower it, which, frankly, I was surprised that they did not do before the elections.”

OPEC said in a statement that oil producers may adjust their plans based on market conditions. “This flexibility will allow the group to continue supporting the stability of the oil market.”