Crude prices keep declining
By Sara Israfilbayova
World oil prices decline for the sixth consecutive session, Brent is at a minimum for seven weeks.
Brent crude futures dropped 0.19 percent to $65.32 a barrel, U.S. West Intermediate Texas (WTI) futures fell 0.26 percent to $61.53 a barrel, according to Interfax.ru.
Citigroup predicts that oil production in the U.S. can exceed 11 million barrels per day by the end of the summer, that is, before the government forecast, which expects to reach this level in November.
"Oil production in the U.S. will continue to reach new records during 2018," the bank’s experts note.
Energy Information Administration (EIA) of the U.S. Energy Department estimates that U.S. oil production this year will average 10.59 million barrels per day, in 2019 - 11.18 million barrels per day. Both indicators were improved by 3.1 percent compared to the previous forecast.
Oil reserves in the U.S. for the week ended on February 2 rose by 1.9 million barrels - to 420.25 million barrels. Reserves of gasoline increased by 3.41 million barrels, distillates - by 3.93 million barrels, the U.S. Energy Department reported.
Oil production in the U.S. rose by 3 percent to 10.251 million barrels per day, a new record for weekly data.
OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.
Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from January 1, 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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