Crude prices change in different directions
By Sara Israfilbayova
World oil prices in the course of trading on Tuesday morning demonstrate multidirectional dynamics, while remaining near the highs in three years.
Brent crude futures dipped 0.4 percent, to $69.96 per barrel from the previous day’s close. But traders said Brent was well supported overall around $70 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were at $64.47 a barrel, up 0.3 percent from their last settlement. WTI hit a December-2014 peak of $64.89 a barrel in early trading, RIA Novosti reported.
Prices for “black gold” are supported with the reduction of raw materials production within the framework of the OPEC + agreement, analysts at Bank of America Merrill Lynch believe.
“This agreement coincided with a significant demand for oil and economic growth, which contributed to an increase in prices for “black gold” by 13 percent since early December 2017,” the Reuters news agency quotes.
Meanwhile, the next Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) meeting to be held in Oman on January 21. The meeting is planned to discuss possible ways of reaching the OPEC + agreement.
Azerbaijan will not be represented at the Joint JMMC meeting, Azertac reported.
The JMMC includes member states of OPEC and non-OPEC members. The committee`s meeting usually takes place once in every two months to monitor how effectively member countries are complying with agreed production cuts. The Committee includes Venezuela, Kuwait, Algeria, Oman, Russia, Saudi Arabia and the Secretary General of OPEC.
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. The meeting ended with signing 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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