The Week In Hindsight, 14 March 2014
Brent crude declined this week after it emerged that output from OPEC countries, mainly Iraq, had increased by 500,000 barrels per day during the last month. After factoring in a reduction of 150,000 Libyan barrels per day, the net gain in supply for the Brent market became 350,000. This pushed prices briefly back to the $106.50 level before the benchmark made a raid recovery ahead of the weekend close.
This was as tensions remain high over the vote for Crimea due to take place on Sunday. Should the Ukraine/Crimean situation escalate to the level where the west imposes economic sanctions upon Russia, then supply concerns for both Brent and UK Nat Gas could become validated by considerably higher prices. WTI also fell over the week due to higher than expected stockpiles.