On June 27, oil prices rose
again boosted by a weaker dollar but worries over an ongoing supply glut capped
gains. According to Reuters, Brent crude futures had gained 25 cents to $46.08
per barrel. US WTI crude futures were up 23 cents at $43.61 per barrel. Oil
prices have weakened significantly over the last month.
The Organization of the
Petroleum Exporting Countries (OPEC) and non-OPEC countries, led by Russia,
have been trying to reduce a global crude glut with production cuts. In May,
OPEC and non-OPEC countries agreed to extend cuts of 1.8 million barrels per
day until March 2018. Russia accounts for 300,000 barrels.
Despite the cuts, which
started in January, markets remain well supplied due to rising output
elsewhere, Reuters reported, noting that OPEC members Nigeria and Libya are
exempt from the cuts and have raised production. OPEC member Iran was also
allowed a small increase to recover market share lost under Western sanctions
over its nuclear programme.
Russia’s Deputy Energy
Minister
Kirill Molodtsov said on June 27 that Russia fully
complies with the terms of the agreement on oil production cap between OPEC and
non-OPEC nations at the moment.
“The Russian Federation
fully complies with all parameters offered,” TASS quoted Molodtsov as saying.
https://www.neweurope.eu/article/oil-prices-rise-oversupply-concerns-remain/