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Oil prices continue to rise

19 February 2018 16:26 (UTC+04:00)
Oil prices continue to rise

By Sara Israfilbayova

Oil prices are rising on Monday with the recovery in Asian stock markets, as well as the escalation of tensions in the Middle East.

Brent crude futures up 0.85 percent to $65.39 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 1.25 percent to $62.45 a barrel, according to Rosbalt.ru.

Israeli Prime Minister Benjamin Netanyahu said on February 18 that Israel is ready to act not only against Iran’s Middle Eastern allies, but also against Tehran, if he continues to actively intervene in the conflict in Syria.

Among the factors holding back the further rise of the market, analysts call the rapid growth of oil production in the U.S.

According to the calculations of the Energy Information Administration (EIA), weekly production of raw materials in the U.S. rose to a historic high of 10.27 million barrels per day for the week by February 9.

In addition, the number of installations for drilling oil wells in the U.S. last week increased by 7 pieces to 798 - the highest value since April 2015, the data of the oil service company Baker Hughes showed on February 16.

The Riyadh government is carefully analyzing the future price curve structure in oil markets because it regards prices further out as an important element in achieving a high valuation in what could be the biggest initial public offering in history, the sources told Reuters.

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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