Azernews.Az

By Sara Israfilbayova

Oil prices stabilized on Friday after deep losses at the previous session due to pressure from high-performing production in the U.S. and the expectation of an increase in oil production by OPEC member countries.

Brent futures fell by 0.1 percent, to $77.48 a barrel, U.S. West Texas Intermediate (WTI) crude futures eased by 0.24 percent, to $66.88 a barrel, RIA Novosti reported.

Baker Hughes will release a weekly report on the number of drilling rigs in the U.S. Last week, the U.S. oil producers increased the number of drilling rigs by another 15 to 859, which was the maximum value since March 2015.

According to the Energy Information Administration (EIA) of the U.S. Energy Department, the average daily oil production in the country returned to record values ​​in March and for the first time in the U.S. history reached 10.474 million barrels per day, an increase of 2.1 percent in monthly terms and 14.6 percent in the annual.

At the same time, investors react to the data on the weekly dynamics of production and oil reserves in the U.S. For the week ended May 25, oil production in the country increased by 44,000 barrels per day - up to 10.769 million barrels per day. The reserves fell by 3.6 million barrels, or 0.8 percent, to 434.5 million barrels (with a forecast of a decline of just 0.4 million barrels).

Oil prices continue to exert pressure and fears of growth in oil production by OPEC +. Russian Energy Minister Alexander Novak said last week 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.

Moreover, sanctions against Iran, whose share of oil supply in the global market is 4 percent, can lead to a decrease in global oil reserves. The level of oil production in Venezuela fell to a minimum over several decades.

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

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