OPEC Meeting on 30th November to Extend Oil Cuts
On Thursday, the global oil markets have shown stability. It was due to rising production of U.S crude oil and indexes were beaten the expectations. The OPEC will boost an ongoing production cut during a meeting and it is expected at the end of current month. Brent crude oil prices were at 61.98 U.S dollars per barrel at 0438 GMT and it was 11 cents above its last close. The U.S. WTI (West Texas Intermediate) crude futures were 55.37 U.S dollars per barrel and it was 4 cents up from its last settlement. “Oil the U.S crude minimized an unexpected rise in the inventory data. The senior market analyst at futures brokerage OANDA in Singapore said that both above-mentioned contracts increased a few benefits. In spite of these small benefits, last week, Brent and WTI have lost at least 4% in the value since hitting 2015 highs.
It also pulled down in part by rising crude accessibility in the United States. The U.S Energy Information Administration issued a statement on Wednesday that the U.S crude inventories (C-STK-T-EIA) increased for the 2nd week. It builds by 1.9 million barrels in the week of November from 10 to 459 barrels. The production of U.S crude oil (C-OUT-T-EIA) hit a record with 9.65 million barrels per day. It means that output increased by at least 15% since its most recent low level in during mid-2016. Most analysts said that oil prices were significantly well supported because massive efforts made by the OPEC (Organization of Petroleum Exporting Countries) to deduct oil production to secure oil market according to prices. The deal will be expired in the month of March next year and OPEC will arrange a meeting on 30th November about policy and an extension of cuts.