Oil is heading for the greatest annual earnings since 2009

2016/12/30 17:26


{Baghdad: Euphrates News}

Friday oil prices tend to achieve the biggest annual gains since 2009 after the Organization of petroleum exporting countries agreed {OPEC} with top producers to cut crude production outside to reduce global supply glut pushing prices for more than two years.

And increased the U.S. wti futures six cents to $53.83 a barrel by 1100 GMT.

And Brent crude settled world measurement contracts a month as soon as March delivery maturity at 56.85 dollars per barrel.

Brent rose about 50 percent this year, while us crude rose about 43 percent of the raw material recorded the biggest annual gains since 2009, while Brent and WTI 78 percent and 71 percent respectively.

Oil prices declined to less than half its level in summer 2014 while exceeding $100 a barrel because of a surfeit of supply due to reasons including shale oil boom. Price downward trend intensified later that year when Saudi Arabia rejected any deal for OPEC to cut production and affecting that defend market share.

But a new agreement for OPEC about reducing production reached over three months starting from last September, reflecting the return of the 13-member organization to adopt the old goal of protecting prices though doubts remain about implementation.

In a sign that the producers are committed to a reduction of six months starting from January the Sultanate of Oman has informed its customers that it will reduce the contractual amounts allocated to them under a fixed-term contract by five percent in March but did not remember whether reducing supply will continue after that.

A poll of global agencies published on Thursday that oil prices would rise gradually towards $60 a barrel by the end of 2017 but the strength of the dollar and the rebound expected us oil production and possible non-compliance with the agreed khevidat are all factors that will limit further gains.

Market Friday ignored an unexpected increase in u.s. crude stocks rose 614, 000 barrels in the week ending 23 December, according to the US energy information administration data.

Analysts expect a decline of 2.1 million barrels in stocks.

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