TODAY.AZ / Business

Crude prices up against OPEC's reports on oil production cut

23 October 2017 [15:14] - TODAY.AZ

By Azernews


By Sara Israfilbayova

World oil prices are rising on Monday morning, as investors are positive about comments from the meeting of the technical committee on monitoring the implementation of the agreement on the oil production cut of OPEC+.

U.S. West Texas Intermediate (WTI) crude is up by 0.39 percent and stands at $52.04 per barrel, meanwhile Brent crude jumped by 0.21 percent-at $57.87 a barrel, according to Reuters.

The countries, participating in the deal, fulfilled its obligations by a record 120 percent in September. This level is the highest since the beginning of the implementation of the deal. In August this indicator was 116 percent.

The surplus of oil and oil products in the world continues to decline, in the countries of the Organization for Economic Co-operation and Development (OECD), thus in September the indicator was 159 million barrels higher than their average level in five years. In August, this indicator was 171 million barrels.

Investors are also reacting to the statistics of Baker Hughes, a GE company-American industrial service company, which reported on the dynamics of the number of drilling rigs in the U.S. So, for the week ended on October 20, the number of drilling rigs in the U.S. fell by 15 units, or 1.6 percent, to 913 units. In annual terms, the number of installations increased by 360 units, or by 1.7 times. The number of oil drilling rigs fell by seven, or by 0.9 percent, to 736 units.

“U.S. production was also recently impacted by a hurricane for the second time in as many months and the number of U.S. drilling rigs declined for the third week in a row,” said William O‘Loughlin, analyst at Rivkin Securities.

Among other factors supporting oil prices is an active oil demand in Asia, especially in China and India.

So, in January-September, China's oil imports updated the record and grew by 12 percent to 318 million tons, or 8.5 million barrels per day, in the annual comparison.

Procurement of oil by India in September amounted to 4.83 million barrels per day, which is 4.2 percent higher than the same period of last year, and the level of August by almost 19 percent.

OPEC and other major oil producers such as Russia and Azerbaijan reached an agreement in December 2016 to remove 1.8 million barrels a day from the market. 

OPEC and its partners decided to extend its production cuts till March 2018 in Vienna on May 25, 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.

URL: http://www.today.az/news/business/166061.html

Print version

Views: 1624

Connect with us. Get latest news and updates.

Recommend news to friend

  • Your name:
  • Your e-mail:
  • Friend's name:
  • Friend's e-mail: