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Crude prices rise

25 July 2018 17:08 (UTC+04:00)
Crude prices rise

By Sara Israfilbayova

Oil prices of reference marks continue to rise in the course of trading on July 25 on news about the reduction of fuel stocks in the U.S. last week.

Brent crude was up 0.8 percent, at $74.04 a barrel, after gaining 0.5 percent on July 24, U.S. light crude West Texas Intermediate (WTI) was 5 cents higher at $68.57, having risen nearly 1 percent in the previous session, Reuters reported.

In addition, the Chinese authorities are supporting the market to increase government spending, which will increase the demand for oil, as well as concerns about U.S. sanctions against Iran, which could lead to interruptions in fuel supplies from this country.

According to the American Petroleum Institute (API), oil reserves in the U.S. fell by 3.16 million barrels last week, gasoline by 4.87 million barrels, distillates - by 1.32 million barrels. The Institute receives information from operators of refineries, oil storages and pipelines on a voluntary basis.

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.

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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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