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Texas oil rises 1.3% in best week since June after OPEC cut

Texas oil rises 1.3% in best week since June after OPEC cut

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The price of Texas intermediate oil (WTI) rose 1.3% on Friday and stood at $ 59.20 a barrel at the close of the market, in what is its best week since June just when the Organization of Petroleum Exporting Countries (OPEC) announced new supply cuts.

At the end of the operations with live voice in the New York Mercantile Exchange (Nymex), WTI futures contracts for delivery in January advanced $ 0.77 compared to the previous session on Thursday.

West Texas Intermediate futures rose thus approaching $ 60 a barrel when OPEC and its allies agreed to deepen oil production cuts by 500,000 barrels per day until March 2020.

This represents a total production cut of 1.7 million barrels per day.

Confirmation that the Organization of Petroleum Exporting Countries and their partners, including Russia, will withdraw half a million barrels a day from January on the market boosted the price of Texan crude.

The oil cartel decided to readjust its combined level of production to “balance the market” and prevent crude oil from shrinking due to excess supply.

The duration of the agreement was one of the key unknowns. On Friday, OPEC said it would meet again on March 5 and 6. The cartel generally meets every six months, so the announcement had led to the belief that the largest cut would only extend until the first quarter.

In this context, gasoline futures contracts due in January rose almost two cents to $ 1.64 a gallon, and natural gas contracts expiring the same month subtracted more than nine cents up to $ 2.33 per thousand cubic feet.

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