Oil prices rise on data of Baker Hughes
By Sara Israfilbayova
World oil prices are growing on December 18 on data on a reduction in the number of drilling rigs in the U.S. and news about the shutdown of the Forties pipeline in the North Sea.
U.S. West Texas Intermediate (WTI) crude futures were at $57.66 a barrel, up 0.6 percent, from their last settlement, Brent crude futures, the international benchmark for oil prices, were at $63.59 a barrel, up 0.6 percent, from their last close, Reuters reported.
The American oil service company Baker Hughes reported that for the week ended on December 15, drilling rigs in the U.S. were reduced by one unit, or by 0.1percent to 930 units. At the same time oil drilling rigs were reduced by 4, or by 0.5 percent to747 units.
In addition, the market continues to monitor the situation with the repair of part of the Forties pipeline. Earlier, production at the Forties field was stopped due to unplanned repairs. It provides delivery of raw materials from 85 fields in the North Sea and pumps about 450,000 barrels per day.
On December 15, sources of the Reuters news agency reported that oil supplies from Forties were detained for at least two weeks. At the same time, traders point to the absence of significant factors that could push oil prices up or down.
Meanwhile, OPEC expects Azerbaijan’s oil production to decline by 0.05 million barrels per day to average 0.80 million barrels per day in 2017.
In 2018, the cartel expects Azerbaijan’s oil production to drop by 0.04 million barrels per day and stand averagely at 0.76 million barrels per day.
Earlier, OPEC predicted crude output in Azerbaijan to decrease by 0.06 million barrels per day in 2017 as compared to 2016. The cartel forecasted the country’s oil production to drop by 0.05 million barrels per day to average 0.74 million barrels per day in 2018.
Average oil production in the country in the last three quarters declined by 0.05 million barrels per day to average 0.80 million barrels per day, compared to the annual average in 2016, according to the cartel’s estimates.
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 the end of 2018 in Vienna on November 30, 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.
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