Economic news

Oil drops a little after reaching mid-2015 levels due to growing production

Oil prices today dropped a little retracting from the levels of the middle of 2015 attained a day earlier, which is due to production volumes in the US and Russia, weakening the measures initiated by OPEC in order to prop up the market.

US WTI futures lost 3 cents from the last close this morning falling to $60.34 per barrel, but it’s near the mark of $60.74 – yesterday’s peak that was the top price in over 2.5 years.

Brent futures, the global standard for prices of oil, went down to $66.49 for a barrel, which is 8 cents lower than the last settlement, though keeping near the record of $67.29 since the middle of 2015.

The downward movement came after the signs of excessive supply, while US production is expected to gain and the possibility of current growth continuation seems unlikely to some economists.

A number of short breakdowns like those at the Forties and Libyan pipelines, as well as Iran protests, gave rise to the speculative actions, said Ole Hansen of Saxo Bank.

As the pipeline issues are fixed and the Iran protests having no effect on the oil output, prices could take a downward trajectory in the beginning of this year, largely because of US production growth, he said as well.

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