Oil price down despite OPEC cuts

VIENNA, February 15, 2017 – Despite OPEC’s Monday confirmation that it had succeeded in reducing production, oil prices dipped again on Wednesday.

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.

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