Oil prices slightly dropped on Tuesday expecting the info on U.S. crude inventories, as traders compared the effect of growing U.S. oil production to the recent decision of OPEC and other oil exporters to go on with production cuts.
Global standard for oil prices – Brent crude moved down to $62.35 for a barrel this morning, which is less 10 cents from the previous settlement.
U.S. WTI crude lost 4 cents, going down to $57.43 a barrel.
OPEC and some other countries a few days back extended the decision to reduce production by 1.8 mln barrels daily to the end of next year, attempting to blockade an oversupply in the international market and to boost prices.
And though the leading oil exporters expressed their commitment to the deal, Kazakhstan’s Energy Minister said today that it’s going to be a problem for his country to stick to the agreement, despite the support the deal received from the Central Asian Republic.
Such countries like Saudi Arabia and Russia, according to Goldman Sachs, were more zealous in their efforts to reduce production and it lifted its Brent spot predictions for the coming year to $62 for a barrel and WTI outlook to $57.50.
The Bank also said that closer to 2019 the reaction of shale oil companies and others to bigger prices is going to force OPEC and countries like Russia decrease their uninvolved capacity, which means the prices could shrink in the longer term.