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Crude oil prices (August 24)

FILE PHOTO: An oil pump is seen at sunset outside Vaudoy-en-Brie, near Paris, France April 23, 2018. REUTERS/Christian Hartmann
2019-08-24

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SULAIMANI — Crude oil prices were down on Saturday (August 24).

The price of Brent crude was $58.80 down from $59.92 and US WTI crude was $54.17 down from $55.33.

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)