Crude oil prices (July 12)


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SULAIMANI — Crude oil prices remained down on Thursday (July 12), compared to the previous close.

The price of Brent oil was at $74.62, down from $77.23 previous close, and US WTI crude was at $70.86, from $73.36.

OPEC agreed on June 22 on an increase in oil production from July after Saudi Arabia convinced Iran to cooperate by about 1 million barrels per day (bpd), or one percent of global supply.

The Organization of the Petroleum Exporting Countries (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 December 2018.

The producer group is coping with a global glut of crude oil after seeing prices halve and revenues drop sharply in the recent past. The cuts are likely to be shared again by a dozen non-OPEC members led by top oil producer Russia.

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.