Oil prices are near six-month low, led by oversupply that continues despite the efforts of OPEC (OPEC) and other manufacturers to reduce production and to support markets, Reuters reported.
Futures on Brent oil increased by 14 cents, or 0.30 percent, to 47.06 dollars per barrel, while on US crude oil WTI – by 8 cents, or 0.18 percent, to 44.54 dollars a barrel to 9:35 pm. local time.
The prices of both the benchmark is still about 13% below their levels at the end of May, when manufacturers led by OPEC (OPEC) extended the deal to reduce production by 1.8 million barrels per day with nine months to the end of March 2018
Increasing production in the US, especially from shale companies, contributes to the ineffectiveness of the measures of OPEC.
“Oil is unlikely to find solace into the weekend either, with … Baker Hughes Rig Count expected to deliver its now weekly increase of operational rigs,” said Jeffrey Halley, senior market analyst at futures brokerage OANDA in Singapore.
US investment bank Piper Jefferies says prices are falling due to “continuous increase of US wells, the weekly increase in inventories in the US, growing production in Nigeria and Libya and the weak performance of the transaction by key OPEC members Iraq and the UAE.”
The high export and production of Russia also perpetuating production. The country is expected to export 61.2 mln. Tons of oil through the pipelines in the third quarter (about 5 million. Bpd) to 60.5 million tons. In the second quarter, according to industry sources and Reuters calculations.
In the United States not involved in the transaction to reduce production, oil production increased by over 10% last year to 9.3 million. Barrels a day, Energy Information Administration country expects this figure to rise above 10 million. barrels a day in 2018
As a signal of continued oversupply traders again hire oil tankers to store unsold crude oil while waiting for higher prices.
“We continue to hear that big cutbacks are on the cusp of happening,” according to Wells Fargo. “The evidence, however, implies otherwise. And the longer oil prices remain low and range-bound, the harder it will be for prices to bounced above $60—as production costs have dropped significantly since 2014, which keeps more producers in the game.”
