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Crude prices rise to maximum since 2015

4 January 2018 16:54 (UTC+04:00)
Crude prices rise to maximum since 2015

By Sara Israfilbayova

World oil prices are increasing on Thursday in the course of trading and are trading close to the maximum marks for 3 years on data of the next reduction in the U.S. fuel inventories.

U.S. West Texas Intermediate (WTI) crude futures were at $62.16 a barrel, up 0.9 percent, from their last close. They touched $62.21 shortly before, their highest level since May 2015.

Brent crude futures, the international benchmark for oil prices, were at $68.23 a barrel, up 0.9 percent, after revisiting a May 2015 high of $68.27 shortly before, Reuters reported.

American Petroleum Institute (API) reported that oil reserves in the U.S. decreased by 5 million barrels last week. Official data of the U.S. Energy Department will public data and experts on average predict that they will indicate a decrease in stocks by 4.7 million barrels.

Gasoline stocks in the U.S. are expected to grow by 2 million barrels a week, distillates - by 1.3 million barrels.

In addition, according to a survey conducted by the Bloomberg agency, oil production in OPEC countries in December did not change compared to the November level.

Oil prices have maintained support because of the protests in Iran, which have become the most serious threat to the spiritual leadership of Iran since 2009.

The Islamic Revolutionary Guards Corps sent troops to three provinces of Iran to suppress anti-government protests.

Crude prices also continue to be supported by the current agreement to reduce oil production, the main participants of which are the OPEC countries and Russia.

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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