Oil prices change in different directions
By Sara Israfilbayova
Oil prices of the reference marks do not show a single dynamics during the Asian trading on July 30 after Friday’s decline on fears that OPEC+ could increase oil production more than expected.
Brent crude futures were up 65 cents at $75.12 a barrel, U.S. crude futures West Texas Intermediate (WTI) were up $1.39 at $70.08 a barrel, Reuters reported.
After fluctuations on Monday morning, oil prices moved to the green zone, within the correction after a significant decline on July 27 against the backdrop of data on the increase in the number of drilling rigs in the U.S. over the past week. According to the American oil and gas service company Baker Hughes, a GE Company (BHGE), for the week of July 27 total number of oil drilling rigs in the country increased by three, to 861 units.
The U.S. Department of Commerce estimated real GDP growth in the U.S. in the second quarter of 2018 accelerated to 4.1 percent in annual terms from 2.2 percent in the first quarter. This is the fastest growth rate since 2014.
Russian Energy Minister Alexander Novak did not exclude that at the next meeting of the ministerial committee of OPEC+ the parties can discuss and increase oil production in excess of 1 million b/s.
“Everything can be discussed on the basis of what will be on the market at the moment. The decision is now made for one million barrels until the end of the year. With the condition that in September we will see how the balance of production, consumption taking into account the factors including Libya, and production in other countries. We have any opportunities, based on the parameters that are in the agreement today,” he said.
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