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Crude oil prices (October 23)

FILE PHOTO: Oil facilities are seen on Lake Maracaibo in Cabimas, Venezuela January 29, 2019. REUTERS/Isaac Urrutia/File Photo
2019-10-23

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SULAIMANI — Crude oil prices were up on Wednesday (October 23) compared with the previous day.

The price of Brent crude was $59.49 up from $58.80 and US WTI crude was $54.15 up from $53.32.

The Organization of the Petroleum Exporting Countries (OPEC) and its Russia-led allies agreed on December 7 to slash oil production by more than the market had expected.

They decided curb output from January by 0.8 million barrels per day versus October levels while non-OPEC allies contribute an additional 0.4 million bpd of cuts, in a move to be reviewed at a meeting in April.

OPEC, Russia, and several other producers began to reduce supply in January 2017 in an attempt to erase a glut. They have extended the pact until March 2020.

Oil prices have more than halved in the past two years after Saudi Arabia raised output steeply in an attempt to drive higher-cost producers such as US shale firms out of the market.

The plunge in oil to below $50 per barrel - and sometimes even below $30 - from as high as $115 in mid-2014 has helped reduce growth in US shale output.

(NRT Digital Media)