Baku, Azerbaijan, Sept.11
By Leman Zeynalova – Trend:
World oil prices are rising on Sept.11 amid the statements about possible extension of the oil output cut deal.
The price for November futures of Brent oil has increased by 0.56 percent to $54.08 per barrel as of 06:59 (UTC + 4).
The price for October futures of West Texas Intermediate (WTI) grew by 0.84 percent and stood at $47.88 per barrel.
Earlier, Saudi and Venezuelan oil ministers said that in the case of necessity, their countries are willing to extend the market re-balancing measures after the first quarter of 2018.
On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.
The reductions will be on the same terms as those agreed in November.
Another factor affecting the oil market is the Hurricane Irma which has already caused electricity disruption in Florida. Earlier, Hurricane Harvey put pressure on US oil sector. The US Department of the Interior’s Bureau of Safety and Environmental Enforcement said that roughly 13.5 percent of oil production in the Gulf of Mexico was also shut in on Aug.31.
Follow the author on Twitter: @Lyaman_Zeyn