Goldsmith: increase oil prices as a result of the reduction of investments of major companies
19/11/2017 12:00 am
[rtl]BAGHDAD (Reuters) -
A drop in production for OPEC members and 10 other non-OPEC members led by Russia by 1.8 million barrels has had an impact on global oil prices, experts say.
Economist Manaf al-Sayegh explained to Al-Sabah that "rocky oil rigs in the United States have also decreased their number by 190 excavators and the exit of a significant number of these rigs of production because of the inconvenience of the current prices of excavation costs, where the expected production of nearly one million barrels per day» .
"All the progress, as well as other reasons related to lower supply, have had a direct impact on price increases due to increased demand," he said.
Brent crude prices rose as the market closed on Saturday, OPEC prices rebounded again, and Brent crude was up 66 cents at $ 62.04 a barrel, recovering from five-day losses.
US crude <CLc1> was up three-day highs above the dollar before falling to $ 56.08 a barrel, up 94 cents on the day. OPEC prices rose to $ 59.98 a barrel from $ 59.79 on Friday.
Al-Sayegh said that the increase in oil prices for this period came because of the reduction of the major oil companies of the investment budgets, which led to the postponement of many of the future programs and projects that could have been carried out by those companies and therefore a drop in a large number of investments.
Crude oil production in the United States hit a record 9.65 million bpd this month, meaning that US production has risen by about 15 percent since mid-2016.
The International Energy Agency said earlier that the United States would be responsible for about 80 percent of the global increase in crude production over the next 10 years.
The Organization of Petroleum Exporting Countries (OPEC) showed production fell by 79,000 barrels per day to 32.76 million barrels in August, mainly affected by lower production in Libya, Gabon, Venezuela and Iraq.
Despite rising signs, analysts warned that the Organization of the Petroleum Exporting Countries needs to extend its agreement to cut oil output beyond the end of March to rebalance the market.[/rtl]
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