Oil prices weakened after the US Increase Aso drill

Equity World, Indonesia CNN – Oil prices closed lower in trading Monday (30/1) after a report showed that US drilling activity increased.

It makes speculators worry that production cuts were dilaakukan organization of oil-exporting countries (Organization of the Petroleum Exporting Countries / OPEC) could not reduce the supply of abundant oil.

As quoted by Reuters, according to Baker Hughes, the number of active drilling in the US reached its highest point since November 2015 ago.

It was motivated by oil prices, which reached US $ 50 per barrel.

As a result, the price of Brent oil fell US $ 0.29 to US $ 55.23 per barrel. Meanwhile, the price of West Texas Intermediate (WTI) fell US $ 0.54 to US $ 52.63 per barrel.

In fact, OPEC and other oil producers including Russia, agreed to cut output by 1.8 million barrels per day in the first half of 2017.

In fact, these countries have cut production by 900 thousand barrels per day in January this year.

However, data is Petro-Logistics predicts that production cuts will only reach 75 percent of the target. Thus, the price of oil expected to be above US $ 50 per barrel, but will not be higher.

However, JP Morgan said that there is the possibility of oil prices could reach US $ 60 per barrel next year, which is still driven by OPEC production cuts. read Gold Prices Rise Thin after the stock market and US Treasury yields turned lower | Equity World


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