OPEC and United States Plan to Increase Production of Oil: Oil Prices Fell
OREANDA-NEWS The world prices for oil on Monday decrease against the background of rising raw material extraction in the United States and the OPEC countries, according to the auction.
As of 8.28 GMT, the cost of November futures for the North Sea Brent crude oil mixture decreased by 0.14%, to 77.53 dollars per barrel, October futures for WTI oil — by 0.19%, to 69.67 dollars per barrel.
At the end of August, Brent oil rose by 4.3%, showing the most significant rise since April, and WTI - only 1.5%.
According to the August OPEC report, the cartel member countries in July increased oil production by 40.7 thousand barrels per day compared to June — up to 32.323 million barrels per day. According to Reuters, citing data from its survey, OPEC production in August rose to a maximum of 2018 in 32.79 million barrels per day. The growth was largely due to the more active production of Libyan oil, the Agency adds.
On Sunday, Bloomberg also reported, citing sources, that oil production in Libya has stabilized at more than 1 million barrels per day since mid-July — after the end of hostilities in areas where there are most facilities for the transportation of oil.
In the US, oil production in June reached a new record value-10,674 million barrels per day, which is 2.2% more than a month earlier, the energy information administration of the Ministry of energy of the country (EIA) reported at the end of last week. The previous record was set in April and amounted to 10.475 million barrels of oil per day.
Russia increased production by 2.7% compared in August to the same month last year, but the figure remained 0.2% lower than in October 2016, the figure for which was adopted as a starting point for agreement OPEC+.
Despite this, analysts expect an increase in oil prices due to the introduction of US sanctions against Iran. According to Oanda analyst Stephen Innes, the cost of Brent will be " supported by the fact that US sanctions against the Iranian oil sector will eventually lead to a decrease in supply in the market."
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