Oil began to rise at the statement of al-falikha about the imminent rebalancing of the market

© AP Photo / Hasan JamaliДобыча oil. Archival photoOil began to rise at the statement of al-falikha about the imminent rebalancing of the market© AP Photo / Hasan Jamali

Oil began to rise on Monday afternoon, as investors and speculators play the statement of the Minister of energy, industry and mineral resources of Saudi Arabia Khalid al-falikha about possible emergency, this year, rebalancing the market of raw materials, according to the auction.

As at 14.53 GMT the cost of the August futures for North sea petroleum mix of Brent increased by 0.4% to 47.56 USD per barrel. The price of August futures for oil of mark WTI has grown on 0,27% — to 45.09 USD per barrel. Traders reacted to comments al-falikha that even given the increase in shale oil rebalancing global oil market is expected in the fourth quarter of this year.

During the morning trading oil fell on fears of market participants regarding the growth of production of «black gold» in the United States, Libya and Nigeria, said the Agency Reuters. Thus, according to the US Department of energy, oil production in the country for the week ended June 9, up 0.13%, or 12 thousand barrels per day, up to 9,330 million barrels per day.

In its June report, OPEC reported that oil production in Libya in may increased compared to April of 178.2 thousand barrels per day up to 730 thousand barrels per day. In Nigeria, the figure rose to 174,2 thousand barrels per day to 1.68 million barrels per day. However, al-falih said that the level of production in Libya and Nigeria is within the range set by the OPEC countries. He also added that it is not necessary to demand from Libya to the slowdown in the recovery of its production. At the same time, Libya and Nigeria should not be considered a threat in the implementation of the agreement on the reduction of oil production, the Minister said.

However, according to some analysts, the steady growth in US production and increase in production in Libya and Nigeria, which are exempt from obligations under the transaction OPEC+, undermine the organization’s efforts to reduce production of «black gold» in the near future, indicates the Agency. «At the moment there is no reason to be too optimistic», — quotes Agency analyst Commerzbank of Karsten frycz (Carsten Fritsch).

OPEC and a number of not members of the organization countries agreed in late 2016 in Vienna on the reduction of its oil production to total 1.8 million barrels per day from October levels, of which 300 thousand are in Russia. The agreement was concluded for the first half of 2017 with possibility of extension. In may, its validity was extended for nine months until the end of March 2018.

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