Oil Prices Up Amid Possibility Of OPEC Deal Extension

Oil Prices Up Amid Possibility Of OPEC Deal Extension

World oil prices are rising on May 8 after the positive statements made by a number of countries regarding the possibility of extending the OPEC oil output cut deal, Trend News Agency reported.

The price for July futures of Brent crude oil has increased by 0.81 percent to $49.50 per barrel as of 06:23 (GMT +4).

Meanwhile, the price for June futures of West Texas Intermediate (WTI) has grown by 0.44 percent and stood at $46.56 per barrel.

Earlier, Iran’s Oil Minister Bijan Namdar Zanganeh said he believes that OPEC and non-OPEC producers are likely to extend output curbs to support price.

Moreover, Saudi Arabia’s Minister of Energy, Industry and Natural Resources Khalid al-Falih said that Brunei is ready to extend the OPEC deal. OPEC members, including Saudi Arabia support the extension of Vienna deal. Russia’s Energy Minister Alexander Novak has also recently said that his country stands for extending the deal.

In December 2016, OPEC and non-OPEC producers reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices.

Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from Jan. 1, 2017 for six months, extendable for another six months.

OPEC agreed to slash the output by 1.2 million barrels per day from Jan. 1.

Share