Oil prices up amid expectations for OPEC deal extension
Baku, Azerbaijan, May 19
By Leman Zeynalova – Trend:
World oil prices are rising on May 19, amid the optimism about extension of the OPEC oil output cut deal.
The price for July futures of Brent crude oil has increased by 0.65 percent to $52.85 per barrel as of 06:25 (GMT +4).
Meanwhile, the price for June futures of West Texas Intermediate (WTI) has grown by 0.75 percent and stood at $49.72 per barrel.
Earlier, Saudi Arabia and Russia made a joint statement, saying during the OPEC meeting to be held May 24-25, they will propose the extension of the output cut deal by nine months.
In December 2016, OPEC and non-OPEC producers reached their first deal since 2001 to curtail oil output jointly and ease a global glut after more than two years of low prices.
Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from Jan. 1, 2017 for six months, extendable for another six months.
OPEC agreed to slash the output by 1.2 million barrels per day from Jan. 1.
Follow the author on Twitter: @ Lyaman_Zeyn