Oil falls amid lower commitment to OPEC cuts

Oil markets retreated on Friday amid lower commitment to OPEC cuts but remained in strong weekly gains.
At 1970 GMT, London Brent crude futures were down 19 cents, or 0.4 percent, at $ 48.23 a barrel. Prices have risen about 3.5 percent since the start of the week.
US crude was $ 45.93 a barrel, down 15 cents, but heading for weekly gains of 3.8 percent.
Crude prices remained around late November levels when a group of oil producers, including Russia and the Organization of the Petroleum Exporting Countries (OPEC), pledged to block about 1.8 million barrels per day of supplies between January and March 2018.
“OPEC’s commitment to production cuts fell to 98 per cent in June, but most importantly, the production of the two currently exempted members (of the cuts) Libya and Nigeria is increasing by about 700,000 bpd from the time of the OPEC agreement in November, Which would cancel the impact of about 60 percent of the OPEC cuts, and the increase in US production over time invalidates the impact of the rest. ”
US oil production has increased more than 10 percent over the past year to 9.4 million bpd.


https://en.economiciraq.com/2017/07/1...-to-opec-cuts/