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Oil prices ease

31 May 2018 12:34 (UTC+04:00)
Oil prices ease

By Sara Israfilbayova

Oil prices decline on Thursday amidst the data of the American Petroleum Institute (API) about the growth of stocks in the U.S. over the past week.

Brent futures fell by 0.22 percent, to $77.55 a barrel, U.S. West Texas Intermediate (WTI) crude futures eased by 0.07 percent, to $68.16 a barrel, RIA Novosti reported.

Gasoline stocks in the U.S. for the week decreased by 1.682 million barrels, distillates - increased by 1.466 million. Oil reserves at the country’s largest terminal in Cushing dropped by 132,000 barrels.

The cost of oil on May 31 is corrected after the growth of about 3 percent the day before on the background of a report by Reuters that OPEC + countries are satisfied with the results of the oil production reduction deal and will be committed to its terms by the end of 2018. At the same time, according to the source of the agency, gradual easing of the terms of the deal this year is not ruled out - production growth is possible in case of a physical shortage of raw materials, but it will be gradual and cautious.

A possible output increase by the Organization of Petroleum Exporting Countries (OPEC) and non-OPEC members including Russia has been in focus. Saudi Arabia, de facto leader of OPEC, and Russia have discussed boosting output by some 1 million barrels per day (bpd).

OPEC and some non-OPEC producers have committed to curbing their output by about 1.8 million bpd until the end of 2018.

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.

OPEC+ members will meet in Vienna on June 22 to discuss whether their commitment should remain unchanged.

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Sara Israfilbayova is AzerNews’ staff journalist, follow her on Twitter: @Sara_999Is

Follow us on Twitter @AzerNewsAz

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