By Sara Israfilbayova
World oil prices continue to rise on Friday after overcoming a mark of $ 80 per barrel of Brent brand on the eve, against the background of a decline in world reserves.
Brent crude futures rose by 51 cents to $79.81 a barrel, U.S. West Texas Intermediate (WTI) crude futures were at $71.61 a barrel, up 12 cents and set for a third straight week of increase, Reuters reported.
“World reserves are approaching long-term average values, which indicates that the coordinated actions of the OPEC countries and non-members of the organization on the Vienna deal were successful,” the analyst of the oil and gas sector Cantor Fitzgerald Jack Allardyce cites Reuters.
According to the IEA May report, commercial oil stocks in OECD countries in March fell to below the five-year average of 1 million barrels, to 2.819 billion barrels. This level has become minimal since March 2015.
One of the main objectives of the agreement to reduce oil production in the OPEC + deal is to reduce commercial oil reserves in the world to an average level over the past five years. At the same time, of all the world's commercial reserves, the participants in the transaction are tracking stocks in the most developed countries - the OECD.
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.
Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is
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