Brent crude surges from recent low
After hitting recent low of US$50 for a barrel, Brent crude is heading northward as the US rig count last week indicated a slowdown in shale drilling. Further, from the start of 2019, the OPEC and other major oil producers including Russia have lowered oil production by almost by 1.2 million barrels per day.
On Tuesday, the Brent crude was trading at around US$ 62 for a barrel, which is nearly 24 per cent up from its recent lows. The crude prices were at a peak in October 2018 at around US$ 84 per barrel.
Besides, on Monday, International Monetary Fund (IMF) cut its growth forecast for the world economy by 20 bps to 3.5 per cent, amid trade war tension. This is the second downward revision from IMF in the recent months. This reduction in global growth indicates that there would be pressure on the demand side too.
The following charts indicate the recent price trend of Brent crude oil price.
