Energy crises

Oil prices dipped on Apri 26 on expectations that producer club OPEC will soon raise output to make up for a decline in exports from Iran following a hardening of sanctions on Tehran by the United States.

Oil continues to fall after a sharp decline last week, news agencies said.

Investors remain skeptical of OPEC's promises to cut yields and are worried about economic turmoil. Thus, on the New York Trade Exchange, US crude oil fell by more than $ 3 or nearly 7 percent to $ 42 a barrel, which was the lowest price since last June.

In January of this year, the world oil market was in rough balance. The annual growth of world oil demand was essentially equal to the growth of world oil supply. Today, world oil supply exceeds demand by about one million barrels per day (about 1 percent of the world oil market). The accumulated imbalance during 2018 has grown world oil stocks and has now led to a sharp decline in prices.

Iran is bracing for the restoration of U.S. sanctions on its vital oil industry as it grapples with an economic crisis that has sparked sporadic protests over rising prices, corruption and unemployment.

Saudi Arabia said on May 18 it is consulting other oil producers in and outside OPEC to ensure the world has adequate supplies to support economic growth after prices hit $80 a barrel for the first time since 2014.

Crude oil prices are expected to jump 23 percent this year amid strong economic growth, while metals prices are rising, hit by ongoing trade tensions, the World Bank has said.

Europe will soon experience a gas shortage and price spike if it tries to rely on U.S. gas imports to cover rising demand instead of increasing purchases from Russia, Kremlin energy giant Gazprom told Reuters.

Oil hit $71 a barrel on Jan. 25 for the first time since 2014, supported by OPEC-led supply curbs, a record-breaking run of declines in U.S. crude inventories and a weaker U.S. dollar.

Oil rose further above $68 a barrel on Jan. 4 to the highest since May 2015, supported by unrest in Iran raising concern about risks to supplies, cold weather in the United States boosting demand and OPEC-led output cuts.

Saudi Energy Minister Khaled al-Faleh has said that oil producing nations could start discussing in June when to raise output, though OPEC is expected to maintain curbs until it clears a global glut.