Home / Business / Brent oil prices fall 2 percent, as operators expect an increase in production after an OPEC agreement

Brent oil prices fall 2 percent, as operators expect an increase in production after an OPEC agreement



SINGAPORE (Reuters) – Brent crude prices fell more than 2 percent on Monday, as traders considered an expected increase in the product agreed at the headquarters of the Organization of the Petroleum Exporting Countries (OPEC). Vienna on Friday.

FILE PHOTO: An oil pump is seen in Velma, Oklahoma, USA. US, April 7, 2016. REUTERS / Luc Cohen

Brent LCOc1 crude oil futures, the international reference for oil prices, reached $ 73.90 per barrel at 0035 GMT. 2.2 percent since its last closure.

U.S. Crude oil futures West Texas Intermediate (WTI) CLc1 were at $ 68.36 per barrel, down 0.3 percent, supported by a slight drop in drilling activity in the United States.

The prices initially went up after the agreement was announced, since the supply was not seen to increase to the extent that some expected.

The partners of OPEC and other countries, including Russia, since 2017 have reduced production by 1.8 million barrels per day (bpd) to adjust the market and maintain prices.

Largely due to unplanned disruptions in places like Venezuela and Angola, the group's output has been below expected cuts, which it now says will be reversed by the increase in supply, especially from the OPEC leader , Saudi Arabia.

The British bank Barclays said that OPEC and Russia's commitments would take "the market from a deficit of -0.2 million bpd in H2 2018 to a surplus of 0.2 million bpd."

Energy consultancy Wood Mackenzie said the agreement "represents a compromise between responding to consumer pressure and the need for oil-producing countries to maintain oil prices and avoid damaging their economies."

In the United States, US energy companies They cut an oil rig last week, the first reduction in 12 weeks, bringing the total of platforms to 862, Baker Hughes ( GE.N ) said Friday.

That put the platform on track for its lowest monthly gain since the decrease in two platforms in March with only three platforms added so far in June, although the overall level is still only one less than the March 2015 peak of The last week .

Report of Henning Gloystein; Editing by Joseph Radford

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