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SINGAPORE (Reuters) – Brent crude oil prices fell more than 2 percent on Monday as traders took into account a production hike expected Friday in Vienna at the headquarters of the Organization of the Petroleum Exporting Countries (OPEC).
The Brent LCoC1 crude oil futures contract, the international benchmark for oil prices, was established at $ 73.90 per barrel at 0:35 GMT, down 2.2% from the previous close.
CLC1 futures for West Texas Intermediate (WTI) US crude were $ 68.36 per barrel, down 0.3%, supported by a slight decrease in drilling activity in the United States. United.
Prices first jumped after the announcement of the deal because we did not see it boosting supply as much as some had expected.
OPEC member countries and non-OPEC countries, including Russia, have reduced their production by 1.8 million barrels per day (bpd) since 2017 to tighten the market and support the prices.
Largely because of unforeseen disruptions in places like Venezuela and Angola, the group's output has been lower than targeted reductions, which it says will be offset by increases in supply, including from OPEC in Saudi Arabia.
British bank Barclays said that OPEC and Russia's commitments would "bring the market a deficit of -0.2 million bpd in the second half of 2018 to a surplus of 0.2 million bpd" .
Wood Mackenzie Energy Council said the deal "represents a compromise between the response to consumer pressure and the need for oil producing countries to maintain oil prices and not to harm their economies."
In the United States, US energy companies first cut an oil rig last week, the first reduction in 12 weeks, bringing the total number of platforms to 862, Baker Hughes (GE.N) said Friday.
This allowed the platform to track its weakest monthly gain since it dropped from two platforms in March with only three platforms added in June, although the overall level remains at a lower level. at the March 2015 summit of the previous week.
Report by Henning Gloystein; Editing by Joseph Radford
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