Prices of oil remained almost level today, with OPEC’s adherence to the production cuts agreement making up for the new data coming from the United States that its output hit 10 mln barrels a day, the first case since 1970.
NYMEX crude futures held at the same $64.73 per barrel, while the previous session showed 0.4% gain.
London Brent crude futures lost 1 cent, resulting at $68.88 for a barrel, while it grew by 3 cents in the preceding session.
Oil production by OPEC increased last month bouncing from the minimum of eight months due to bigger output in countries like Nigeria and Saudi Arabia, which compensated for a continued fall in Venezuela, a poll by Reuters showed.
At the same time commitment to the output reduction deal by oil-producing states reached 138%, compared to December’s 137%, as the poll demonstrates, meaning that decisiveness to comply is not lessening even when prices are at their maximum since 2014.
OPEC members understand that limited production would underpin prices and it is to their advantage, Tomomichi Akuta of Mitsubishi UFJ Research and Consulting said.
Prices of oil will hardly rise much higher than $70 per barrel this year, as the market is influenced on the one hand by OPEC’s output reduction and on the other hand by a booming US production, according to yesterday’s poll by Reuters.