Oil rose on Monday, extending a rally triggered last week by speculation that OPEC might agree to cut production to reduce a supply glut that has pushed prices to the lowest in over a decade, Reuters reports on February 15.
Oil rose on Monday, extending a rally triggered last week by speculation that OPEC might agree to cut production to reduce a supply glut that has pushed prices to the lowest in over a decade, Reuters reports on February 15.
International Business Times posted: as oil prices continued to rally Monday amid speculation the Organization of the Petroleum Exporting Countries would act to limit output, oil producers around the world looked to the next steps to be taken. While many producers have been lobbying for an OPEC production cut for months, a cap alone may not be enough to solve the industry’s problems, according to commodities experts.
It is said that Monday, global benchmark Brent crude climbed to $44.82 per barrel, up 46 cents, while the U.S. benchmark oil futures contract rose to $30.02 per barrel, up 58 cents from Friday’s close. U.S. oil had changed hands at prices below $27 per barrel at times in 2016, some of the lowest prices seen in 12 years.
Crude prices have been dropping since mid-2014, with the worldwide oil supply having increased because of the shale boom in the U.S. and high production in the Middle East. Meanwhile, demand, particularly in emerging markets, has decreased, causing prices to plummet.
It is also stresses that OPEC has refused to cut production despite the glut, arguing that prices would level out on their own. Any OPEC output cap likely would need to be accompanied by the cooperation of major oil-producing countries outside the organization, including Russia.
