OPEC Sec-Gen says 'it is early' to talk about extension of oil deal
By Gunay Camal
Crude prices fell on March 6 amid the report released by the Baker Hughes on the growing number of drilling rigs in the U.S..
The price of May futures for Brent crude oil has dropped by 0.39 percent to $55.68 per barrel as of 01:15 EST. Meanwhile, the price of April futures for West Texas Intermediate (WTI) oil has decreased by 0.47 percent and stood at $53.08 per barrel.
The number of drilling rigs in the U.S. jumped by 0.27 percent and stood at 756 over the working week ending March 3, according to the Baker Hughes. Oil rigs have increased by 1.16 percent, while gas rigs have decreased by 3.31 percent in the country during the week.
The oil output data of Russia also affected the prices. The average daily volume of oil production in the country increased in February by 1.9 percent per annum to 11.109 million barrels per day.
Russia has pledged to cut its oil output by 300,000 barrels per day from 11.247 million barrels per day in October 2016 to 10.947 million barrels per day during the first half of 2017.
Meanwhile, OPEC Secretary General Mohammad Barkindo said that it is early to talk about the extension of oil output cut deal.
“When we meet in May, we will be able to look at all the data … and see what we have achieved,” Barkindo told journalists during the CERAWeek energy conference in the US city of Houston.
Last November in Vienna, the OPEC members agreed upon a deal to cut production as of January 1 by about 1.2 million barrels per day, or about 4.5 percent of production, to 32.5 million barrels per day.
According to a recent OPEC report, world oil supply fell by over one million barrels per day in January, averaging at 95.75 million barrels per day.
---
Follow us on Twitter @AzerNewsAz