TODAY.AZ / Business

World crude prices up

04 July 2018 [15:51] - TODAY.AZ

By Azernews

By Sara Israfilbayova

Oil rises in price on the forecast of the American Petroleum Institute (API) about a sharp reduction in commodity inventories of fuel in the U.S.

U.S. West Texas Intermediate (WTI) crude futures rose 0.6 percent, to $74.60 a barrel, compared with their last settlement, Brent crude futures were changing hands at $78.10 per barrel, up 0.4 percent, from their last close, according to Reuters.

According to the API, oil reserves in the U.S. fell by 4.5 million barrels, while analysts expected a smaller reduction - by 3.267 million barrels.

Earlier it was reported that the U.S. will impose an embargo on Iranian oil from November 4. The Americans intend to isolate the financial flows of Iran. Also, the U.S. will be ready to impose sanctions after this date against international companies, if they finance the Iranian regime.

Analysts polled by S & P Global Platts forecast a decrease in oil reserves by 4.5 million barrels, gasoline by 2.5 million barrels, distillates by 250,000 barrels.

Meanwhile, Abu Dhabi (UAE) announced that it is preparing to raise oil production from the current level in accordance with the June OPEC+ arrangements.

 Saudi Arabia also confirmed its readiness to use reserve capacity to increase oil supplies to the world market.

Earlier, OPEC and a group of non-OPEC countries agreed that they would return to 100 percent compliance with previously agreed oil output cuts, after months of underproduction by OPEC countries.

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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