Azernews.Az

Friday March 29 2024

Crude prices show different tendency

30 October 2017 13:57 (UTC+04:00)
Crude prices show different tendency

By Sara Israfilbayova

World oil prices show different tendency on Monday morning after Brent and West Texas Intermediate (WTI) reached a record on negotiations about the possibility of extending the OPEC + deal and statistics on the number of drilling rigs in the U.S. for the week.

Brent crude is down 0.02 percent at $60.43 per barrel, while U.S. West Texas Intermediate (WTI) is 0.06 percent up at $53.93 per barrel, Investing.com reported.

“With strong compliance to OPEC’s production curbs already supporting prices, comments from the Saudi Arabian Crown Prince that suggested the production cut agreement should be extended added to gains,” ANZ bank said.

One of the main counterbalances to the efforts of OPEC+ is the increase in the production of raw materials in the U.S.

The U.S. oil production increased by 1.1 million barrels per day to 9.5 million barrels per day in the week, ended on October 20, according to the Energy Information Administration (EIA).

Senior analyst of Alpari, Vadim Iosub, said that the recent statements of Crown Prince of Saudi Arabia, Mohammad bin Salman and Russian President Vladimir Putin, about the possible extension of the pact to cut production for nine months, until the end of next year, to reduce the reserves of" black gold "in developed countries to average for five years of the level also affected the world oil prices.

In September, oil reserves fell to 160 million barrels to the average level compared with 340 million barrels at the beginning of the year.

Moreover, support for crude prices was provided by a report on the reduction of oil exports from Iran in October and the tension in Iraqi Kurdistan.

Baker Hughes reported on October 27, the number of active oil platforms in the U.S. rose in a week from 736 to 737 units and did not influence the market.

In November 2016, the OPEC summit was held in Vienna, where OPEC members reached an agreement on reducing oil output by 1.2 million barrels per day. In December 2016 was a meeting of oil producers outside the OPEC. Following the meeting, was signed an agreement to reduce oil production by a total of 558,000 barrels per day starting from January 2017.

OPEC and its partners decided to extend its production cuts till March 2018 in Vienna on May 25, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.

The next OPEC+ meeting will be held on November 30 in Vienna.

Meanwhile, Azerbaijani Energy Minister Parviz Shahbazov told Trend that Azerbaijan has not received an invitation to the OPEC+ meeting.

The country was producing 793,900 barrels of oil per day in January, 776,400 barrels per day in February, 733,300 barrels per day in March, 781,100 barrels per day in April and 785,300 barrels per day in May, 793,700 barrels of oil per day in June, 796,700 barrels of oil per day in July and 734,800 barrels in August.

---

Follow us on Twitter @AzerNewsAz

Loading...
Latest See more