Crude prices rise

By Azernews

By Sara Israfilbayova

Oil prices are rising on June 5 as part of the correction after a significant decline on Monday due to investors’ concerns about the growth in the U.S. crude production, as well as a possible increase in OPEC+ production.

U.S. West Texas Intermediate (WTI) crude futures were at $65.05 a barrel up 0.46 percent, while Brent crude futures, the international benchmark for oil prices, were up 0.09 percent, at $75.36 a barrel, according to Interfax.

During trading on Monday, oil fell by more than 1 percent due to concerns of traders about the growth of raw materials production in the U.S. Last week, the Energy Information Administration (EIA) of the country’s Energy Ministry reported that the average daily oil production in the U.S. in March for the first time in the country’s history reached 10.474 million barrels per day, an increase of 2.1 percent from the February level.

In addition, investors fear that the OPEC + countries at a June meeting may decide to increase oil production amid a possible drop in supplies from Iran and Venezuela. These fears from the end of May are the main deterrent for the growth of oil prices.

OPEC and some non-OPEC producers have committed to curbing their output by about 1.8 million bpd until the end of 2018.

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.

OPEC+ members will meet in Vienna on June 22 to discuss whether their commitment should remain unchanged.