According to the US Department of Energy, commercial reserves of crude oil in the country once again showed growth, updating the record for the extraction of “black gold”. Reserves are growing for the seventh consecutive week, and experts suggest that the United States has already formed an excess of hydrocarbons, which makes OPEC and Russia, in particular, to think about a new stage of reduction in global oil production.
Over the last week, production has increased by 400 thousand barrels per day. Now, the US produces 11.6 million barrels daily. Crude oil inventories rose by 5.783 million barrels, although analysts had forecast growth of 2.4 million barrels. During the previous reporting period, stocks increased by almost 6 million barrels. Against this background, Brent and WTI oil prices went down: to $ 71 and $ 61 per barrel, respectively.
Russia and Saudi Arabia have also increased their production volumes in recent months. In September, Russia increased production to 11.54 million barrels per day, and the Saudis to 10.5 million barrels per day. The OPEC + organization thinks about continuing to cut production in 2019. Discussion of this issue will be held at a meeting of the ministerial monitoring committee of the organization in Abu Dhabi on November 11.
The material has been provided by InstaForex Company – www.instaforex.com