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Crude prices rise on results of OPEC+ meeting

22 January 2018 11:52 (UTC+04:00)
Crude prices rise on results of OPEC+ meeting

By Sara Israfilbayova

World oil prices are rising on Monday after the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) meeting in Oman on January 21 and the comments of oil ministers of Saudi Arabia and Russia on its results.

Brent crude futures up 0.29 percent, to $68.81 per barrel, U.S. West Texas Intermediate (WTI) crude futures were at $63.45 a barrel, up 0.22 percent, RIA Novosti reported.

Saudi Energy Minister Khalid Al-Falih said that the main countries-participants in the agreement of the Vienna OPEC + deal agreed to continue cooperation after 2018, adding that the mechanism has not yet been determined.

He expressed hope that the situation on the oil market will keep improving.

Russian Energy Minister Alexander Novak, in turn, stressed that the member countries of the agreement, after the expiration of the current agreement, may meet for consultations on the situation in the oil market.

Moreover, the JMMC reported that OPEC and participating non-OPEC countries have achieved a record-breaking conformity level of 129 percent with their voluntary production adjustments.

The monthly average conformity level for the first year of the Declaration of Cooperation was a remarkable 107 percent, said the JMMC based on the Report of the Joint Technical Committee (JTC).

“Conformity levels have increased on a monthly basis, from 87 percent in January to the outstanding current level. Once more, the unwavering resolve of participating countries to rebalance the market has been amply demonstrated,” said the committee.

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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