Oil futures were up on Monday but the gains are limited due to the continuously rising U.S. drilling activities and output cuts in Nigeria and Libya.
The Organization of the Petroleum Exporting countries along with other producers has agreed to curb output until the end of first quarter next year. However, the movement did not reach its goal on reducing global supply, which is currently bloated. Oil ministers from the organization will meet Russian ministers, which is not an OPEC member, to talk about the present state in the oil market this July 24 in St. Petersburg.
WTRG Economics’ president of energy consultant James Williams suggested that the current scepticism on the support of Russia on OPEC’s output cuts only adds up to the doubts on what the organization is going to do.
Libya and Nigeria had been invited to the talks and the output from both nations is likely to be capped earlier than November according to Kuwait, this is the time when OPEC is set to host a formal meeting. Still, the Nigerian oil minister was absent on the conference due to prior commitments.
Meanwhile in prices, U.S. West Texas Intermediate (WTI) crude futures was up by 17 cents to settle at $44.40 a barrel and global benchmark Brent crude futures was also higher by 22 cents to trade at $46.93 a barrel on the day. The price of Brent was lower around 17 percent for this year’s opening, regardless of it being obedient with the OPEC-led deal.