Oil Prices Dropped on Monday Amid US Increased Production
- Trade Magnates Team
- Dec 11, 2017
- 1 min read
Trade Magnates - Oil prices dropped on Monday as US output rose last week which could undermine OPEC efforts to cut productions and control the oil market. Crude oil for January delivery gained more than 2% over the last two sessions, but closed lower for the second consecutive week.
WTI crude future was down to $57.23 a barrel while Brent oil for February delivery was trading higher at $63.44 a barrel.
U.S. increased output is threatening to undermine OPEC and a group of non-OPEC producers’ efforts, to rebalance the market by cutting productions. It was the third consecutive weekly increase in the US rig count which indicates a higher U.S. oil production.
OPEC and other non-OPEC oil producers started cutting output in January 2017 and they announced to continue cutting Oil production throughout 2018.