Crude Oil Prices Survive at Highest Level for Nine Week

By : Abraham Sihombing And Aldo Bella Putra | Monday, August 07 2017 - 15:38 IWST

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INDUSTRY.co.id - Seoul - Crude oil prices in Asian markets stayed at a nine-week high thanks to strong US employment support last week and a drop in US oil drilling activity. Nevertheless, OPEC production increases limit price increases.

According to a Reuters report in Seoul on Monday (07/08/2017) morning, Brent crude oil prices rose 0.15% or 8 cents to RpUS $ 52.50 per barrel. Meanwhile, the price of West Texas Intermediate (WTI) crude oil rose 0.14% or 7 cents to US $ 49.65 per barrel.

The price of both types of crude rose to its highest level since late May 2017, when oil producers who are members of the Organization of the Petroleum Exporting Countries agreed to cut output by 1.8 million barrels per day (bpd) by the end of March 2018.

According to oil analyst ANZ Bank, crude oil prices shot as investors assessed strong US employment data as a positive sign for oil demand in the United States. Meanwhile, the decline in the number of oil drilling rigs operating in America also sustains price increases.

The United States Department of Labor reported Friday that there were about 209,000 new jobs in the United States in July. The data is above previous expectations. Thus, the majority of companies in the US impose a raise to their workers.

Baker Hughes, an energy services company, published data that US oil drilling firms cut an oil rig in the week ending August 4, 2017, bringing the total rig currently operating to 765 units. Although the number of American rigs dropped last week, the country's oil production reached 9.43 million bpd, the highest since August 2015.

On the other hand, according to a Thomson Reuters Oil Research report, OPEC's crude oil exports throughout July shot to a record high of 26.11 million bpd, mostly from Nigeria. OPEC's high oil production keeps officials from a joint OPEC and non-OPEC technical committee meeting in Abu Dhabi for two days till Tuesday to discuss ways to improve compliance with their supply-cut deal to the world oil market. (Abrahan Sihombing) Seoul - Crude oil prices in Asian markets stayed at a nine-week high thanks to strong US employment support last week and a drop in US oil drilling activity. Nevertheless, OPEC production increases limit price increases.

According to a Reuters report in Seoul on Monday (07/08/2017) morning, Brent crude oil prices rose 0.15% or 8 cents to RpUS $ 52.50 per barrel. Meanwhile, the price of West Texas Intermediate (WTI) crude oil rose 0.14% or 7 cents to US $ 49.65 per barrel.

The price of both types of crude rose to its highest level since late May 2017, when oil producers who are members of the Organization of the Petroleum Exporting Countries agreed to cut output by 1.8 million barrels per day (bpd) by the end of March 2018.

According to oil analyst ANZ Bank, crude oil prices shot as investors assessed strong US employment data as a positive sign for oil demand in the United States. Meanwhile, the decline in the number of oil drilling rigs operating in America also sustains price increases.

The United States Department of Labor reported Friday that there were about 209,000 new jobs in the United States in July. The data is above previous expectations. Thus, the majority of companies in the US impose a raise to their workers.

Baker Hughes, an energy services company, published data that US oil drilling firms cut an oil rig in the week ending August 4, 2017, bringing the total rig currently operating to 765 units. Although the number of American rigs dropped last week, the country's oil production reached 9.43 million bpd, the highest since August 2015.

On the other hand, according to a Thomson Reuters Oil Research report, OPEC's crude oil exports throughout July shot to a record high of 26.11 million bpd, mostly from Nigeria. OPEC's high oil production keeps officials from a joint OPEC and non-OPEC technical committee meeting in Abu Dhabi for two days till Tuesday to discuss ways to improve compliance with their supply-cut deal to the world oil market. (Abrahan Sihombing)

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