Oil rises on data on supplies reduction in U.S.
By Sara Israfilbayova
World oil prices demonstrate a positive trend on Thursday on the data of the American Petroleum Institute (API) on the reduction of stocks of raw materials in the U.S.
Brent crude, the international benchmark for oil prices, up 0.21 percent and stood at $66.58 a barrel, West Texas Intermediate (WTI) crude up 0.18 percent at $59.75 a barrel, Interfax reported.
API released data for the week ended on December 22, according which the reserves of “black gold” in the U.S. fell by six million barrels - to 430.5 million barrels. Although experts predicted a decline in the figure by only 3.97 million barrels - up to 432.53 million barrels. At the same time, gasoline stocks increased by 3.1 million barrels, distillates - by 2.8 million barrels. Oil reserves at the country's largest terminal in Cushing fell by 1.3 million barrels.
Now investors are waiting for the publication of data from the U.S. Energy Department in the afternoon.
In addition, traders continue to win back reports on the state of repair of the Forties pipeline in the North Sea, which was closed for repairs on December 11 due to a breakdown.
On December 25, the petrochemical company Ineos reported that repairs to the pipeline in the North Sea have been technically completed and pressure pipes are being tested. The company expects a gradual return of the pipeline and the Kinneil terminal to normal capacity in early 2018.
Meanwhile, expert in the field of energy Sergei Pikin said that the main task is to maintain the price level, which is now.
He went on to say that if the geopolitical tensions in the Middle East continue to grow, the price of oil may reach $70 per barrel, further adding that pricing policy largely depends on the U.S.
“Apparently, next year the U.S. will enter a new record volume for oil production - more than 10 million barrels per day,” the expert said.
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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