What’s going on?

• Brent oil price has reach $71/barrel – the highest level since May 2019 on the expectation of
  • increasing demand when the global economy reopens;
  • along with the decreasing supply.

What does that mean?

The supply cut is expected in the near future as:

• OPEC and Russia have reached the consensus to continue cutting on oil supply: the total of which would be cut to 6.9m barrels/day (compared with the 9m before the pandemic occurs);
• Shale companies in the US are heavily affected by the recent blizzard;
• The Ras Taruna oil port (accounting for 25% of the total supply in Saudi Arabia), was hit by missiles suspected from Iran, although later, the loss of life and property was claimed to be negligible.

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Content source: Trustville (2021) Trustflash 37.2 (Mar 1 – 7): Giá dầu chạm đỉnh một năm. Available at: https://trustville.vn/2021/03/08/trustflash-37-2-mar-1-7-gia-dau-cham-dinh-mot-nam/ [Accessed on Mar 8, 2021]