Home » Oil.. Prices continue to rise amid optimism to increase production

Oil.. Prices continue to rise amid optimism to increase production

by archyde
According to “Reuters”, Brent futures recorded $117.61 a barrel upon settlement, up by $1.32, or 1.14 percent.

Meanwhile, a source in “OPEC +” said that it is very likely that the group will agree to increase oil production in the range of 600,000 barrels per day next July, which exceeds the previous monthly increases of 432,000 barrels per day.

Talk of increased production comes as crude oil and fuel stocks fell in the United States last week, with demand continuing to exceed supply, and commercial crude stocks declining even as more strategic reserves entered the market.

Crude stocks fell 5.1 million barrels in the week ending May 27 to 414.7 million barrels, compared to analyst expectations in a Reuters poll, down by 1.3 million barrels.

The Energy Information Administration said that the decline comes despite the US government releasing more than five million barrels of reserves last week, and an increase in net crude imports by 83,000 barrels per day.

The Energy Information Administration added that refinery consumption fell by 236,000 barrels per day, last week, which led to a decrease in the total utilization rate 0.6 percentage points to 92.6 percent nationwide as the summer travel season approaches in the United States.

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