Azernews.Az

Friday March 29 2024

Oil prices continue to decline

24 July 2018 18:38 (UTC+04:00)
Oil prices continue to decline

By Sara Israfilbayova

Oil prices of reference marks continue to decline on July 24, the day before, the market concentrated on the risks of increasing the supply of oil, pushing the disputes between the leaders of the U.S. and Iran to second place.

Brent crude oil was unchanged at $73.06 a barrel, U.S. light crude West Texas Intermediate (WTI) was 35 cents higher at $68.24, Reuters reported.

The growing trade conflict between the U.S. and China can weaken the demand for energy, while a number of countries continue to increase oil production.

U.S. President Donald Trump’s statements made over the weekend “definitely add a new layer of uncertainty and volatility,” says John Driscoll, JTD Energy’s chief strategist.

At the same time, Saudi Arabia gave signals that it could refrain from raising oil production to the level of maximum capacity utilization.

Energy Minister Alexander Novak held a meeting in Moscow on July 23 with Iran Oil Minister Bijan Zanganeh, discussing OPEC’s work and cooperation in the energy sector.

Investors are also waiting for data on commercial oil reserves in the U.S., which probably fell by 3.1 million barrels last week.

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

Loading...
Latest See more