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Texas oil rises despite forecast of increase in foreign production

Texas oil rises despite forecast of increase in foreign production


The price of of Texas intermediate oil (WTI) closed Monday with a rise of 0.18%, to $ 60.52 a barrel, on a day marked by forecasts of increase of foreign oil production following a Russian announcement about a reconsideration of the cuts planned for 2020.

At the end of the operations with live voice in the New York Mercantile Exchange (Nymex), the WTI futures contracts for delivery in January totaled 8 cents compared to the previous session on Friday.

Texan oil began the week again in green despite OPEC announcements to Russia, which have served to slightly offset optimism in the oil market after the signing of the trade agreement between the United States and China that had boosted the confidence of the investors.

OPEC’s announcement comes after this organization had agreed to extend and deepen production cuts in the first quarter of 2020.

However, Russian Energy Minister Alexander Novak said Monday that OPEC will reconsider easing production restrictions during its next meeting scheduled for March.

Novak also said Russia’s oil production would reach record levels this year.

It is also expected that the global supply of countries that are not members of OPEC will increase next year due to a growth in the production of other countries such as the United States, Brazil, Norway and Guyana, which became an oil producer the week pass.

Analysts have also pointed out that Kuwait has announced that disputes over the “neutral zone” of its border with Saudi Arabia, where oil production has been halted for three years, are relevant for the increase in oil production. They could be resolved by the end of 2019.

The break in this area reduced oil production by approximately 500,000 barrels per day.

Experts have pointed out that although oil shortages are likely to be reduced, Texan crude is expected to be contained around $ 60 during the first weeks of January.

In this context, gasoline futures contracts due in January rose one cent, to $ 1.71 a gallon, and natural gas contracts, expiring the same month, declined eleven cents up to $ 2.21 for each thousand cubic feet.

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