The oil prices rise on continued optimism of the investors after the deal, OPEC

Нефть растет в цене на сохраняющемся оптимизме инвесторов после сделки ОПЕК

World oil prices rise on continued optimism of investors after reaching the OPEC agreement to reduce oil production, according to the auction.

As at 22.02 GMT the price of February futures for North sea petroleum mix of mark Brent have grown on 0,63%, to 54,30 USD per barrel. The price of January futures for WTI crude oil rose 1%, 51,55 USD per barrel.

OPEC on Wednesday reached an agreement on the reduction from 1 January 2017 for its oil production by 1.2 million barrels per day — up to 32.5 million. The agreement implies participation of countries outside the cartel. Their production needs a total decline of 600 thousand barrels per day, of which 300 thousand barrels per day agreed to provide Russia. The agreement is for six months with possibility of extension for another six months.

“Everyone benefits (from the agreement — ed.), American shale oil companies benefit the most from the transaction of OPEC. The agreement makes sense from a purely economic point of view. OPEC wanted to stop a price war”, — quotes Bloomberg the head of research of commodity markets, Bank of America, Francisco Blanche (Francisco Blanch).

Against this backdrop, investors ignored the data from the us oil service company Baker Hughes growth in the number of drilling rigs in the United States. According to Baker Hughes, at the end of the 2 Dec the working week the number of drilling rigs in the U.S. rose by 4 pieces, or 0.67 percent, to 597 units. In annual expression the indicator has decreased by 140 units, or 19%.

The number of oil rigs increased by 3 units, or 0.63%, to 477 units. The number of gas rigs increased by 1 unit, or 0.85%, and amounted to 119 units.

Read more about oil prices read more here>>

Source