Oil prices moved in a sideways range today, Wednesday, and this comes after the US Energy Information Administration issued its report on stocks, which showed a decline in stocks for the seventh week in a row, while markets await the official OPEC meeting that will be held tomorrow, which is supposed to take its decision on extending the agreement. Reducing production levels, especially as it will expire at the end of June.
At 10:35 am ET, oil contracts for “June delivery” rose by 9 cents, or 0.2%, to trade the barrel at a price of 51.55 dollars, after recording the highest price per barrel at 51.88 dollars, which is the highest in five weeks, on the Comex section of the Stock Exchange. New York business.
On the London Stock Exchange, Brent contracts “July delivery” achieved gains of 18 cents, to trade a barrel at a price of 54.33 dollars, after achieving its highest level in five weeks at 54.62 dollars.
Elsewhere on the Nymex, gasoline contracts “for June delivery” fell 0.2 cent, or 0.1%, to reach the price of a gallon at 1.662 dollars, and heating oil rose by 0.9 cents, to reach the price of a gallon at 1.6166 dollars.[banner-group name='bannerforex']
Natural gas contracts for “July delivery” also decreased by 3.1 cents, to reach its price at $3.281 per million British thermal units.
The US Energy Information Administration issued its official stockpile report last week, and it showed a decline in stocks by 4.4 million barrels, recording the seventh consecutive weekly decline, while expectations indicated a decrease of 2.4 million barrels, bringing the total stocks to 516.3 million barrels, while the American Petroleum Institute issued a report Unofficially, inventories fell by 1.5 million barrels.
The administration's report also showed a decline in gasoline stocks by 787 thousand barrels, while expectations indicated a decrease of 1.1 million barrels, and on distillate stocks, the report mentioned a decline of 485,000 barrels.
Crude oil prices ended their trading higher yesterday, supported by the recommendation of the joint committee between OPEC and independent producers to extend the agreement to reduce production levels until the end of the first quarter of 2018, which will be raised tomorrow at the official OPEC meeting. With the aim of restoring balance and stability to the markets, OPEC will meet officially tomorrow, Thursday, and the final decision will be taken.
It is worth noting that the Organization of the Petroleum Exporting Countries and the independent producers concluded an agreement in November to reduce global production levels by 1.8 million barrels, with OPEC bearing a reduction of about 1.2 million barrels and the independent producers about 600,000 barrels. The implementation of this agreement began in January For six months.
Although the countries participating in the agreement complied with the implementation of the agreement well, this did not significantly affect global stocks, as was expected, due to the increase in the activity of American companies, the rise in American shale oil production to its highest level in two years, and the increase in the production of some countries not participating in the agreement. The agreement is like Libya.
On the other hand, Baker Hughes Oil Services Company reported that the number of US drilling rigs increased last week, recording the 18th consecutive weekly rise, and thus it reached its highest level since April 2015.
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