Oil futures were up after slipping to its 10-month decline last Thursday. However the market sentiment was still negative driven by continues pressure regarding the brimming supply worldwide in spite of the attempts of OPEC to stabilize the market.
Last May, the Organization of Petroleum Exporting Countries and non-members have decided to deepen the production cut agreement for nine months, instead of the originally planned six. The crude worldwide, however, still carried on regardless of the heightened production in Nigeria and Libya. The two OPEC countries are exempted from the deal.
U.S. crude futures rose as much as 0.49 percent or 21 cents to finish at $42.74 per barrel. It dropped more than $42.05 per barrel which is they’re weakest since August 2016. International benchmark Brent crude futures added about 44 cents to end at $45.76 per barrel, following its slump by $44.53. On the previous session, Brent crude edged down by 2.6 percent to $44.35.
ABN AMRO’s senior energy economist Hans van Cleef said prices were pushed too low and the people who rely on high prices are taking over. Crude slumped more than 20 percent since peaking in late February. This disregarded gains that were made on the previous year after OPEC and other producers agreed to reduce production about 1.8 million barrels per day for the first two quarters this year.
The production of crude is still growing in the U.S., where certain shale producers can manufacture lucratively despite prices falling under the $40 handle.