Brent crude oil hit a new 2017 high on Monday, continuing a rally fueled by improving demand and expectations that producers will extend output cuts.
According to CNBC report, International benchmark Brent rose $1.52, or 2.7 percent, to $58.38 by 11:25 a.m. ET, surpassing the highest level of the year.
U.S. West Texas Intermediate crude remained well below its 2017 high, but topped $51 a barrel for the first time in four months. It was last trading up $1.06, or 2.1 percent, at $51.72.
“The market anticipates that OPEC and non-OPEC [exporters] are going to continue with their production cuts through 2018,” said a market analyst.
The Organization of the Petroleum Exporting Countries, OPEC, have further extended the exemption granted Nigeria and Libya over the output cut imposed on member countries in January 2017.
Last Friday, the Joint OPEC-Non-OPEC Ministerial Monitoring Committee (JMMC) stated that based on the Report of the Joint OPEC-Non-OPEC Technical Committee (JTC) upheld Nigeria’s position that the exemption, which was extended by another six months last May, should be sustained until the country’s oil production stabilises.
Nigeria’s Minister of State For Petroleum Resources, Dr Emmanuel Ibe Kachikwu, told the meeting that although the country’s production recovery efforts have made some appreciable progress since October last year, it is not yet out of the woods.
Dr kachikwu explained that Nigeria will be prepared to limit its crude production when the output stabilises at 1.8 million barrels per day.
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