Prices of oil inched down today in view of increasing production in the US that works against the OPEC-led measures of limiting output aimed at tightening supplies.
Brent futures remained over $70 for a barrel, but dropped to $70.34 this morning, losing 19 cents compared to the last settlement.
U.S. WTI futures added 5 cents, reaching $66.19. And though bullish market holds, experts believe that it is feeling the pull-down from expanding production in the U.S.
U.S. output has gone up to 9.88 mln barrels daily in the month, which is a rise by more than 17% since the middle of 2016. It rapidly nears the mark of 10 mln barrels a day.
American firms increased the number of oil rigs by 12 looking to grow production in the past week, bringing the count to 759, according to last week’s data from Baker Hughes. Now US output is at the level of OPEC’s leading producer – Saudi Arabia.
The only country with a bigger production volume is Russia, with 10.98 mln barrels daily on average last year. Canadian oil production, with its 335,000 barrels a day currently, could begin growing along with investment in the shale oil industry. The country’s total crude output is around 4.2 mln barrels a day.