Image of the oil field in Baku, Azerbaijan - Photo: Reuters
On May 5, oil prices continued to wander at low levels in the past five months after falling 5 percent in the previous trading session.
New developments in oil prices have been noted in the context of world markets, showing concern as rising oil supplies from the United States erased all gains in oil prices since OPEC's decision to cut production. measure.
The continued drop in world oil prices will force OPEC members to rethink their next production cuts in the second half of this month.
However, analysts say that the possibility of a more profound reduction in production is unlikely.
Specifically, Brent crude, which is considered the international benchmark for oil prices, was trading at $ 48.41 a barrel at 0:40 GMT on 4-5, 3 cents higher than the previous lows. .
In the previous session, Brent crude also dropped below $ 50 a barrel.
In addition, West Texas Intermediate (WTI) was trading at $ 45.53 a barrel, up only 1% after dropping 4% in the previous session.
The sharp drop has pushed crude prices back on par with oil prices before OPEC and other non-OPEC oil exporters, including Russia, announced it would cut oil production by nearly 1, 8 million barrels of oil per day in the first half of this year to consolidate the market and push up oil prices.
Oil traders say the reason for such a drop is because of soaring US oil production. US oil output has risen more than 10% since mid-year 2016 to 93 million barrels per day, far short of the output of the world's leading oil producers, Russia and Saudi Arabia.
Experts say that cutting OPEC-led output, even when strictly enforced, is not enough to address the problem of global oil reserves that are already putting pressure on prices. oil.
One of the signs that over-supply of oil is still occurring is that the amount of oil in the Malaysian seas has rebounded after a slight decline in March and May. 4.
This is the oil of OPEC, North America and European oil exporters.
OPEC is scheduled to meet on May 25 at its headquarters in Vienna, Austria, to decide whether to cut further production cuts.
According to information from three OPEC representatives, OPEC and non-OPEC oil exporters will continue to extend the supply agreement's expiry date when it expires in June this year to block Momentum falls. But these sources also say they do not think there will be further cuts. Thank you for leaving valuable comments
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