According to the
International Energy Agency “The Political unrest between Russia and Ukraine
will continue to affect the oil price for months”
As everyone know
that Russia and Ukraine has political unrest over Crimea.
Oil demand around
the world is likely to be lower by margin than forecast this year. Russia economic
growth slows by more than expected following the Ukraine contretemps.
Its oil demand
expected to cut for this year will be 1.3 million barrels per day.
Unrest over Crimea
authorities including the International Monetary Fund and World Bank has cut
their forecasts for Russian growth in 2014.
Oil Supply
problems in the Middle East which is world main source oil also helped Crude
prices despite seasonally weaker demand.
Global supplies of
oil plunged by 1.2 million barrels per day to 91.75 million barrels per day
during March as a result.
An extreme winter
in the US also boosted Crude demand for domestic fuel which means that less oil
was used for business and transportation.