Friday, January 18, 2019

Oil rises in anticipation of cuts in production under the OPEC + agreement


MOSCOW, January 18 - RIA News. World oil prices on Friday evening showed an increase in the region of 3% by major brands on expectations of a decrease in production by OPEC + member countries and statistics on drilling activity in the United States, according to the data of the auction.

As of 22.11 Moscow time, the cost of the March futures for North Sea Brent crude oil mixture rose by 2.47%, to 62.69 dollars per barrel. At the same time, earlier in the course of trading, the indicator reached the level of $ 63 per barrel, which had not been overcome since December 7. And the price of February futures for WTI crude oil rose by 3.25% to 53.76 dollars per barrel.

The OPEC Monitoring Committee (JMMC) earlier on Friday called on all countries participating in the agreement to intensify efforts for the full implementation of agreements to reduce oil production. At the same time, a monthly report of OPEC was published on Thursday, according to which the organization’s countries reduced oil production in December by 780,000 barrels per day relative to the level of October, to 31.578 million barrels per day.

"It gives a signal to the market that they (OPEC + - Ed.) Are serious. They are also trying to show the market that they are ready to abide by the terms of the agreement, and especially - Saudi Arabia," Phil Flynn analyst Price Futures Group told Reuters .

Support for oil prices is also provided by the statistics of drilling activity in the United States. According to the American oil and gas service company Baker Hughes, a GE Company (BHGE), the number of oil rigs involved in the country for the week ended January 18, decreased by 21, to 852 units. This is the lowest figure since May.

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