Oil prices again came to fall on Friday and weakened to lows from late November of last year, offset by an increase caused by the action of OPEC to reduce production.
The cost of July futures for Brent crude on the London ICE Futures exchange to 14:38 dropped to $0,13 (0,27%) to $48,25 per barrel.
Futures price for WTI crude oil for June on the electronic trading on the new York Mercantile exchange (NYMEX) decreased by this time $0,24 (0,53%) – to $45,28 per barrel.
Since the beginning of the week Brent fell by 6.7%, WTI – by 8.2%.
The decline is due to concerns about the rapid growth of production in the United States and doubts about the effectiveness of OPEC.
Production in the U.S. is growing 11 consecutive weeks and peaked in August 2015. In turn, this has led to high fuel stocks in the country – oil stocks last week declined, but weaker than expected, and the reserves of gasoline has increased, which is unusual for this time of year .
In addition, market participants are nervous before the OPEC meeting, which will take place in late may which will discuss the issue of the extension of agreements to restrict production.
On the one hand, many OPEC countries signaled readiness to support the extension of the agreement. However, for example, Libya, freed from it, ramping up production, which recovered to 700 thousand b/d. the Authorities are planning to increase it by another 500 thousand b/d this year, although analysts doubt that it is feasible.