Equity World – Crude oil prices rose to a near three-week high in late trading on Wednesday morning (22/02) after OPEC expressed firm in a deal to cut output and expect other manufacturers to join in the effort to reduce global glut.
The price of US crude oil futures closed up 66 cents, or 1.2 percent, at $ 54.06, down from a session peak of $ 54.68.
Brent crude oil futures prices rose 48 cents per barrel, or 0.9 percent, to $ 56.66 at 02:46 ET (1946 GMT). It reached a high of $ 57.31 earlier in the day.
OPEC Secretary-General Mohammed Barkindo said at an industry conference in London that the January data showed the country’s participation in the OPEC cuts produski been above 90 percent and oil inventories will decline further this year.
US gasoline futures was the biggest mover in the energy sector, fell 1.5 percent to $ 1.4942 per gallon. Which encourages the spread of gas, the refining margin indicator, to the lowest level in the new year.
Organization of Petroleum Exporting Countries and other producers outside the group agreed in November to cut production by about 1.8 million barrels per day (bpd) in an attempt to drain the excess which has been pressuring prices for more than two years.
Barkindo said it was too early to say if the reduction in supply, which lasted for six months from January 1, will need to be extended or deepened in the next OPEC meeting in May.
Based on the agreement, Iran was allowed to increase production from the level of October and Tehran expects its oil production to reach 4 million barrels per day in mid-April.
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Iranian Oil Minister Zanganeh told state television that the OPEC oil producers and non-OPEC committed to cut production.
Bank of America Merrill Lynch cut its forecast for Brent crude oil prices to average $ 50-70 by 2022, from $ 55- $ 75 in the middle of a recovery in US shale production.