Saturday 22 July
BAGHDAD ( Reuters) -
Oil prices on Saturday closed lower amid doubts about producers 'ability to cut output, with concern over the number of drilling platforms in the United States still affecting OPEC producers' efforts to rebalance the oil market.
Brent crude for September delivery closed down $ 1.42, or 2.88 percent, to $ 47.88. US crude futures for September delivery fell $ 1.30, or 2.77 percent, to $ 45.62.
Extension of oil production reduction agreement for nine months
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Despite gains this week, oil has fallen more than 10 percent since the start of the year, as doubts about producers' ability to cut global supply raised investor fears and prompted them to sell black gold.
It is scheduled to meet for a ministerial committee representing the member states of the Organization of Petroleum Exporting Countries (OPEC) , in addition to the common non - member states in the agreement to cut output in Kuwait on Monday next, to examine the compliance of the agreement of these countries to cut production.
The Organization of Petroleum Exporting Countries (OPEC) has approved an agreement, in cooperation with several of the largest oil producers from outside the Organization, led by Russia, which is currently the largest oil producer in the world, in November last year, aimed at reducing production by 1. 8 million barrels per day for the first six months of this year, and ended on June 30, but this agreement has failed to affect so far on the levels of global stocks.
There is still concern that the continued recovery of oil shale oil production in the United States is hampering efforts by major producers aimed at rebalancing the markets. Concerns about rising US production have confirmed that the number of drilling platforms in the United States continues to rise in recent months, reaching a level not seen in more than two years.