The US Forbes report ruled out that the Organization of the Petroleum Exporting Countries (OPEC) and its independent producers, led by Russia, would abandon the production cutout agreement reached in 2016. The US report predicted that the group would maintain its total production cap, but would ease restrictions on able producers on increasing production, pointing out that there are many benefits for the survival of the agreement continues with the formal or informal permit for some members to increase production.
The report pointed out that the producers currently participating in the agreement will seek at this stage to enhance commitment levels, especially for non-OPEC producers, towards working within this group as an institution capable of responding well to changes in the market.
Oil analysts expected the price volatility in the crude oil market to continue this week, after the losses of about 3% recorded last week, in view of the market expectations of increases in production by OPEC countries and their independent producers.
Experts believe that speculation is about the expected productivity increases that have become necessary in light of balancing the markets and exceeding the expected reductions in the light of the production crises in Venezuela and Iran, as the ministerial meeting of producers in Vienna on June 22.
Oil prices fell at the end of last week, as the dollar rose on better-than-expected US job data, putting pressure on commodities priced in USD. US WTI crude fell $1.23, or 1.9%, to $65.81 a barrel, while US crude ended the week at a loss of 3% after falling by about 5% last week. Brent crude fell 77 cents or 0.99%, to trade at $76.79 a barrel, but ended the week up 0.4%.
The number of oil drilling rigs in the United States has increased for the second week in a row, although crude prices have fallen by about 7 percent over the past two weeks. Analysts do not expect any significant changes in the total number of rigs for the rest of the year. Oil drilling companies added two platforms in the week ending June 1, bringing the total number of rigs to 861, the highest level since March 2015. This is the eighth time that it has increased, Baker Hughes Energy Services said in its closely watched weekly report. The number of oil drillers active in the United States in the past nine weeks.
US crude oil inventories fell more than expected last week, as refineries boosted output, with crude inventories falling 3.6 million barrels in the week ending May 25, while analysts had forecast a 525,000 barrel decline, the Energy Information Administration said.
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