Prices of oil moved up today as OPEC and some other countries seem to be determined to go on with output curbs throughout the year and could extend it for the next one.
Brent futures rose to $69.81 for a barrel, gaining 28 cents compared to the last end of session.
U.S. WTI futures reached $64.62 per barrel, 24 cents increase. OPEC in cooperation with a number of oil producing countries, among which is the world’s top producer Russia, began their output limitation program at the start of 2017 looking to restrain excessive global supply and support prices.
The Organization does the pricing of its exported oil based on Brent, which has added nearly a quarter to the price of early 2017, stirring talks of possible end of output cuts. However, according to the information Reuters obtained from sources at OPEC over the week, the Organization along with its partners is positive about continuing production cuts throughout this year.
Nonetheless, Brent stayed lower than $70 for a barrel, while WTI kept short of $65, pressured by growth of U.S. crude inventories and oil output. Shanghai crude futures started today’s trade down almost 2%, bringing its prices almost to equal positions with the United States.