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Oil keeps firm despite Middle East supplies decrease

Oil markets kept up quite firmly today, that is after the news from OPEC members like Saudi Arabia and Iraq declaring decrease in supplies following their scheme aimed at market tightening and upholding prices.

Prices reached their limit due to growing shale oil production in the US and concerns over another storm that could damage refineries and lead to shipping problems.

The global gauge for prices, Brent crude, remained at $55.48 for a barrel, with no change after the last close. West Texas Intermediate crude’s price got to $50 for a barrel, which is $0.09 rise.

Oil minister of Iraq said today that crude oil output in their country at the moment was 4.32 mln barrels per day, whereas in May and June it reached 4.5 mln daily. These statements followed reports demonstrating Saudi Arabia’s crude exports dropped to 6.693 mln barrels per day in the middle of the summer, and in June the figures were 6.889 mln barrels.

OPEC’s leading country, Saudi Arabia, along with several other countries outside of the organization have decided to restrain supplies by about 1.8 mln barrels per day in 2017 and 2018 so as to tighten the market and keep up prices.

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