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Brent crude prices near June 2015 high as production cuts tighten market

Gasoil News - Published on Thu, 28 Dec 2017

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Reuters reported that oil prices were stable recently, with Brent crude lingering near 2015 highs on the back of an outlook for healthy demand amid ongoing production cuts led by OPEC and Russia. US West Texas Intermediate (WTI) crude futures were at USD 58.50 a barrel at 0141 GMT, up 3 cents from their last settlement. Brent crude futures, the international benchmark for oil prices, were at USD 65.25 a barrel, unchanged from their last close, but near the USD 65.83 per barrel briefly on December 12 - the highest since June 2015.

Brent has risen by 47 percent since mid-2017. The Organization of the Petroleum Exporting Countries (OPEC), the Middle East-dominated producer club, and Russia - the world's single biggest oil producer - have been withholding output in order to tighten the market and prop up prices.

The agreement to cut started last January and is set to cover all of 2018.

Mr Jabar al-Luaibi, oil minister of OPEC-member Iraq, said that there would be a balance between supply and demand by the first quarter of 2018, leading to a boost in oil prices.

Mr al-Luaibi said that "During the first quarter of next year there will be more balance between supply and demand, which will reflect positively on improving global oil prices."

The production cuts come amid healthy global demand, which many analysts expect to hit 100 million barrels per day (bpd) for the first time at some point next year or in 2019.

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Posted By : Rabi Wangkhem on Thu, 28 Dec 2017
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