Crude prices change in different directions
By Sara Israfilbayova
World oil prices during the trades change in different directions on May 29, while market participants assess the likelihood of increasing oil production by OPEC countries.
Brent crude, the global oil benchmark, was up 0.3 percent to $75.59 a barrel on London’s Intercontinental Exchange. On the New York Mercantile Exchange, West Texas Intermediate futures (WTI) were trading down 1.9 percent at $66.58 a barrel, the Wall Street Journal reported.
Russian Energy Minister Alexander Novak said at the St. Petersburg International Economic Forum on May 25 that a gradual increase in oil production under the OPEC + agreement could begin in the third quarter of this year, if such a decision is made.
Later, Novak added that the countries of the deal would work out options for mitigating production restrictions within a month, while one of the options is to reach the production levels that were at the signing of the agreement.
The head and co-owner of Lukoil, Vagit Alekperov, said he does not expect oil prices to rise to $100 per barrel.
“I do not think that there will be such a high price because today the price is regulated by the reduction that was achieved by the OPEC + agreement. It is regulated by the statements that come from the U.S. to limit Iran’s oil exports. These are the factors that can be changed today,” Alekperov told RIA Novosti.
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
Follow us on Twitter @AzerNewsAz