Oil Prices Try To Recover Reaching One-Month High
By Daisy Joseph
Positive news about reduction in oil supply has helped the price of oil to increase in the market. Vortexa, a firm which analyzes oil production and export has announced that shipment of oil has reduced by 17%, since January. This means a reduction of more than 100 million barrels of oil per day, shipped in tankers. The market closely watches oil shipment details, because leading oil producers exclusively export oil in tankers. As a result of this data, Brent Crude oil traded at $54.40, gaining 0.4%. The US WTI crude also gained 27 cents per dollar.
The American Petroleum Institute has announced that the US crude oil stocks have reduced by 1.8 million barrels in the past few days. Even though US oil stocks are still high, with 533.7 million stockpiles, the reduction in stocks is good news for the market. This information helped to push the oil prices slightly, reaching the one-month high.
Despite the measures taken by OPEC to cut down oil production globally, the oil stockpile has not reduced greatly, due to the sudden increase in US Shale oil production. The oil producers are willing to extend the deal to cut oil production, only if the non-OPEC members also agree to cut down the production. The increase in supply has not helped the oil prices so far and recovery is within reach now. When the stockpiles continue to decrease, investors expect the oil prices to go up in the future.
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