Oil prices jump in world markets

By Azernews

By Sara Israfilbayova

Oil prices increased on July 3,amid the first fall in U.S. drilling activity in months, although gains were capped by reports of rising OPEC output last month even as the group has pledged to cut supply.

Brent crude futures climbed 0.3 percent, to $48.93 per barrel, after jumping 5.2 percent last week, its first weekly gain in six weeks, U.S. West Texas Intermediate (WTI) crude futures rose 0.5 percent, to $46.28 per barrel, adding to last week's 7 percent gain, according to Reuters.

The number of drilling rigs in the U.S. dropped by 1 unit, or 0.1 percent, to 940 units as a result of the June 30 working week, according to energy services firm Baker Hughes Inc. In annual terms, the number of drilling rigs increased by 509 units, or 2.18 times. The number of oil drilling rigs decreased by 2, or by 0.26 percent - to 756 units.

Another factor, affecting oil prices is concern about the growth of oil production in Libya. Earlier, it was reported that oil production in the country increased to 1 million barrels per day. This figure is the highest since June 2013.

The International Energy Agency (IEA) says that oil production in Libya in May reached its peak since 2014, having increased from 190,000 barrels per day to 740,000 barrels per day in April.

OPEC and other major oil producers such as Russia, Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Sudan, and South Sudan reached an agreement in December 2016 to remove 1.8 million barrels a day from the market. 

OPEC has decided to extend its production cuts till March 2018, 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.