12.05.2020 Brent Oil Daily Analysis

12.05.2020 Brent Oil Daily Analysis

Brent Oil 30.07usd,+0.44 ,+1.48% Today Brent oil is trading at 30.07usd  and it went up with 1.48%. The prices of oil were boosted with the commitment that was made by Saudi Arabia in deepening its cut for oil production. The main goal for Saudi Arabia is to help drain the glut that has built up because of the low demand due to the Covid-19. The total oi production of Saudi Arabia is now down with 7.5million BPD since they are going to cut their production with 1 million barrels per day in June and their production is now down with almost 40percent. This step that was taken by Saudi Arabia actually motivated other OPEC + members to start planning on cutting their production further too. The United Arab Emirates and Kuwait committed to cut production by another 180,000 BPD in total. Kazakhstan has also ordered producers in large and mid-sized oil fields including Tengiz and Kashagan to cut oil output by around 22% in the May to June period.