Prices of the commodity went much higher in late trading. The crude prices remained unchanged for much of the day at $92 a barrel Friday as holidays in the U.S. thinned trading. The U.S. stockpiles have reached to new heights and that is not letting to the increase in crude prices. However, by early afternoon in Europe, benchmark U.S. crude for January delivery increased a little and got a growth of 27 cents and closed at $92.57 a barrel in electronic trading on the New York Mercantile.
Additionally, oil has declined from about $110 in September due to reduced tensions in the oil-rich Middle East; it has further been enhanced by the Iranian nuke deal with the western powers and China. The new development according to observers is going to further help global oil supply and lower down the oil prices.
Oil Production of The U.S. reaches to The Highest Levels
The latest data show that the U.S. crude production is at its highest level in almost 25 years. In fact, the unprecedented production has led to crude stockpiles rise for 10 consecutive weeks. Some market observers believe that due to the absence of major U.S. macroeconomic data, the prices of crude are struggling to find some direction and falling apart.
OPEC Meeting Scheduled in Vienna
The latest meeting of OPEC members which is scheduled this week at Vienna in Austria is going to determine the course of the oil supply and global oil prices. OPEC which accounts for some 40 percent of global oil production is expected to keep its output quota of 30 million barrels a day unchanged, despite requests from some countries that are facing shortage of oil.
The latest reports coming from the circles of OPEC kingpin Saudi, tell that the world’s biggest producer of oil, is a major obstacle when it comes to lowering down the oil prices as the country argues that crude at $100 a barrel provides acceptable income for producers without weighing too heavily on consumers.
Brent Crude Prices
Like WTI, Brent crude, a benchmark for international oils, fell to an extent by 39 cents at $110.92 a barrel on the ICE Futures exchange in London. Whereas wholesale gasoline was down 0.44 cent at $2.690 a gallon in NYMEX, the prices of heating oil fell to a great extent and shed 0.22 cent to $3.0408 a gallon. However, natural gas added 2.1 cents to $3.916 per 1,000 cubic feet in NYMEX.
To contact the reporter of this story: Jonathan Millet at firstname.lastname@example.org