Markets Doubt Declining Supply, Oil Price Increase Trends Failed to Survive
By : Abraham Sihombing And Aldo Bella Putra | Friday, August 11 2017 - 14:58 IWST
INDUSTRY.co.id - Jakarta - Increased production of Nigerian and Libyan crude oil further disrupts the efforts of producer countries that are also members of the Petroleum Exporting Organization (OPEC) to cut daily output. Both African countries are given the right not to restrict production because they are working to restore production capacity after disruption of internal conflict.
According to oil analyst ANZ Bank, the upward trend in crude oil prices yesterday failed to be maintained as the market doubted the decline in supply in the global market. That is in line with the surge in volume of Libyan oil production which reached the highest figure in 2017.
Despite data showing that US oil reserves are currently sharply down by 6.5 million barrels in the week ending August 4, 2017, West Texas Intermediate (WTI) crude oil prices in Seoul, South Korea, Friday (11 / 08/2017) morning only edged up 0.1% or 3 cents to US $ 48.62 per barrel. Meanwhile, the price of Brent crude oil only increased 1 cent to US $ 51.91 per barrel.
On Thursday (08/08/2017), crude oil prices had risen to the highest level in two after the last month. However, the price closed down 1.5% so the WTI price slumped back below $ 50 a barrel due to anxiety over excess supply.
Meanwhile, OPEC earlier revealed their oil production increased by 173,000 barrels per day (bpd) to 32.87 million bpd in July 2017. Faced with this problem, OPEC and some non-OPEC crude producers agreed to extend the deal on oil production cuts As much as 1.8 million bpd. (Abraham Sihombing)