Oil prices rose during trading today, Tuesday, in the European market, and this came due to the rebounds from their lowest levels in about four weeks, in an attempt to end a wave of losses that continued for six consecutive sessions, and the gains were curbed by continuing concerns about the acceleration of production in the United States, especially after the rise in platforms Drilling over the past week to its highest level in two years.
By 09:24 GMT, US crude “June delivery” rose towards the level of 49.40 US dollars a barrel from the opening level of the trading session at 49.18 dollars, and achieved its highest level at 49.52 dollars, while the lowest level was 49.14 dollars.
Brent crude also rose towards the level of 51.75 US dollars a barrel from the opening level at 51.55 dollars, and achieved its highest level at 51.91 dollars, while the lowest level was 51.49 dollars.
It is noteworthy that US crude oil “June delivery” ended yesterday’s trading, recording a decrease of 0.9 %, to record its lowest level in about four weeks at $49.02 a barrel, and Brent contracts “June contracts” lost about 0.8 % in the sixth daily loss. Consecutive within the longest streak of daily losses since late October of last year.
Over the course of last week’s trading, oil prices lost 7 % in the first weekly loss in a month, affected by fears of a continuous increase in drilling activities in the United States that overshadowed expectations of “OPEC” extending the agreement to reduce production until the end of 2017.
Last Friday, Baker Hughes Oil Services announced that drilling rigs in the United States increased by five rigs, to a total of 688 rigs, the highest level since April 2015, which supported expectations of accelerating production in the largest oil consumer in the world.
And US production recorded about 9.25 million barrels per day during the week ending on the fourteenth of this month of April, which is the highest level of production since August 2015, to approach the production levels of Saudi Arabia, which is the second largest oil producer in the world.
On the other hand, the representative of the technical committee appointed by “OPEC” to monitor the implementation of the agreement to reduce global production stated that the commitment rate of producers inside and outside the Organization of Petroleum Exporting Countries “OPEC” regarding the implementation of the agreement amounted to 98 % last March, indicating that the committee raised a recommendation To the organization about the need to extend production cuts in the second half of this year.