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Oil prices hit $67 per barrel, driven by production cuts - Daily News Egypt

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Oil prices hit $67 per barrel, driven by production cuts

OPEC seeks extending production cuts until April’s meeting

Crude oil prices reached their highest level in a month in yesterday’s trading, estimated at $67 per barrel, driven by the OPEC supply cuts as well as the trade developments between the US and China, compared to $61 per barrel last month.

The OPEC and the non-OPEC countries are planning to extend the production cuts for a further period, Medhat Yousef, the former vice chairperson of the Egyptian General Petroleum Corporation, told Daily News Egypt.

Yousef expressed his concern, as oil price hikes negatively impact the importing countries, such as Egypt, as it weighs heavily on the economy.

On the other hand, the OPEC Secretary-General, Mohammad Barkindo, has pointed out to indications of the market’s recovery and stability in crude oil prices in the upcoming period.

“The OPEC and non-OPEC countries are determined to continue the efforts to achieve balance in the global oil market, despite the pressures the organisation faces,” Barkindo said, affirming that the OPEC members are continuing talks in order to make decisions in favour of the oil market balance.

Barkindo assured that the barrel’s price will not exceed $70, until the next meeting of the OPEC members in April in order to discuss extending the production cut during 2019.

Oil-producing countries, including Russia, agreed in November 2016 to curb their production by 1m barrel per day (b/d). The agreement entered into force in early 2018 and was later extended until the end of 2018.

Oil revenues fell down, as the US crude hit a record of 12m b/d, raising the country’s export rates.

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