The price of oil on Thursday’s trade ended up mixed following investors who are currently measuring the rising output in the United States against the remarks from Gulf oil manufacturers saying that there is a possibility that OPEC will prolong its supply reduction.
Members of the Organization of the Petroleum Exporting countries, mainly Kuwait and Saudi Arabia, gave signs that the OPEC and other producers are likely to extend its production cuts before June.
U.S. crude futures were 17 cents lower to finish at $50.27 per barrel. International benchmark Brent crude futures was higher by 3 cents at $52.96 per barrel.
Saudi Energy Minister Khalid al-Falih said at a press conference in the United Arab Emirates that there is a general agreement in the making; however it is not yet finished.
In defense to the minister’s statement, president of WTRG Economics in London James Williams said the ministers non-bearish remarks did not hike the prices that much due to the rising shale output in the United States, adding that the markets point of view seems to be that the shale output in the U.S. exceeds the action of OPEC.
The price of crude slipped about 3.5 percent last Wednesday, following the data from the U.S. government suggesting that the domestic crude stocks surprisingly dropped and gasoline stocks announced an unexpected barrel build by 1.5 million.
Official data shows that the crude oil production in the United States rose more than 10 percent, or 9.25 million barrels per day (bpd) since last year. An inventory of 532 million barrels in the prior country was still close to its all-time record.