Oil prices up ahead of OPEC meeting
Baku, Azerbaijan, May 24
By Leman Zeynalova – Trend:
World oil prices are rising on May 24 ahead of the OPEC meeting to be held today in Vienna.
The price for July futures of Brent crude oil has increased by 0.22 percent to $54.27 per barrel as of 06:05 (GMT +4).
Meanwhile, the price for July futures of West Texas Intermediate (WTI) has grown by 0.17 percent and stood at $51.56 per barrel.
OPEC monitoring committee meeting will be held May 24 in Vienna.
Russia and Saudi Arabia earlier said that they will propose during the OPEC meeting to be held May 24-25 the extension of the oil output deal by nine months.
The two countries agreed to do whatever it takes to achieve the desired goal of stabilizing the market and reducing commercial oil inventories to their 5 year average level, as well as to underscore the determination of oil producers to ensure market stability, predictability and sustainable development – the joint actions of the participating producers should be extended by 9 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.
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