Oil market to tighten this year - OPEC

The Organisation of the Petroleum Exporting Countries (OPEC) has been working diligently to tighten the oil market in 2019, following a drop in production output. The decision made in December last year to implement production cuts has led to a rise in oil prices. However, various variables such as the situations in Libya and Venezuela have further supported OPEC's efforts to restrict supply. The sanctions imposed by the US on Venezuela have significantly impacted its oil production, leading to economic turmoil in the country. The Trump administration is determined to continue squeezing Venezuela to force Maduro out of power. OPEC's main goal of stabilizing the oil market faces challenges as some member countries are considering ending the production cuts beyond June. Saudi Arabia and Russia are key players in this decision, with Saudi Arabia aiming for oil prices at around $80 per barrel. The upcoming meeting in May will determine if exemptions for consumers of Iranian oil will continue, potentially leading to extended production cuts by OPEC. Nigeria, a major oil producer, is urged to review its budget benchmark for oil prices in 2019 and prepare for potential downside pressure on demand. The IMF's forecast of a slowing global economy raises concerns for oil-consuming economies, indicating a possible decrease in oil prices in the medium term. As OPEC navigates through these challenges, the future of the oil market remains uncertain.