However, by October, forecasters warned that oil demand would grow slower than expected. In the same month, the stock market fell, worried by selling high-flying technology, trade disputes in the US and the US, and rising interest rates.
Investors began to deprive risky assets, and by the end of the month, oil fell by about $ 11 for the high October 3 barrel. Neglecting trading and rotation due to the fall in crude oil prices and rising natural gas contracts also deepened oil losses, analysts say.
It is worsening the situation when the sanctions officially return to their place in Iran on November 5, President Donald Trump surprise the market by approving generous exemptions for the biggest customers of the Islamic Republic. This meant that Saudi Arabia, Russia and several other producers came to the market where demand growth was shrinking and less Iranian exports than expected.
At the end of the year, the US trade dispute remains unresolved, and the market remains concerned that the entire trade war between the two world's largest economies will push fuel demand. Meanwhile, US oil production is growing faster than expected and the United States crosses Saudi Arabia and Russia to become the world's largest producer in the second half of 2018.
However, many US producers need oil prices ranging from $ 50 to $ 55 to cut even the cost of new wells, which forces some energy companies to seize the fracture, said Neal Dingmann, oil analyst at Suntrust Robinson Humphrey.