Oil price down despite OPEC cuts
Brent closed 0.63% and WTI 0.73% lower than the previous close, at USD 55.62 and USD 52.83 per barrel, respectively.
OPEC’s cuts have yet to have a significant effect on total oil supply. Rising US shale output – expected to reach its highest level since May last year in March – has managed so far to keep the oil price at about USD 55 per barrel.
OPEC announced Monday that its members had cut production by around 1 million bopd, in line with a November agreement. The deal also included non-OPEC members who have also reduced output albeit not as significantly. Russia, the biggest non-member in the deal, cut output by roughly 100,000 bopd in January.