Prices of oil dipped today (Friday), as the markets were taken aback by US output projections for the coming year. The fuel inventories have also arisen in the US sending the prices down to a low.
Crude prices are still at their last year November levels, despite the agreement on cuts by OPEC and non-OPEC member countries. The cuts have yielded no positive results for the Oil Prices as Shale production, increasing output, heightened efficiency and undisciplined OPEC cuts from member and non-member countries has kept the prices at the same level as of before the OPEC agreement last November.
OPEC compliance with the agreed upon cuts has decreased to 98percent in June. However, the non OPEC members have continued to uphold the glut, as Libya and Nigeria currently pump out about 700,000 bpd higher than that at the time of November agreement.
Apart from that, US shale production has increased more than 10percent in the last year to reach 9.4 million bpd.
Brent crude futures, the international benchmark for oil prices, were down 7 cents, or 0.1 percent, at $48.35 per barrel at 0443 GMT, but up 3.5 percent for the week.
U.S. West Texas Intermediate (WTI) crude futures were at $45.97 per barrel, down 11 cents, or 0.2 percent, but up around 4 percent over the week.
Despite the Friday’s fall, oil prices have fared better in the week, gaining more than 4percent.