International crude oil prices on Monday (July 10) Asian session rebounded nearly 1%, following the previous trading day plunged 3% after the recovery of some lost ground. However, the US drilling activity is high, and the Organization of Petroleum Exporting Countries (OPEC) a large number of supply is still the oil market pressure.
Monday's Brent crude futures rose 0.9 percent to $ 47.12 a barrel, down 2.9 percent for the previous session, falling to more than $ 46.28 in more than a week; US WTI crude futures rose 0.9 percent to $ 44.63 a barrel, Prior to a trading day closed down 2.8%, intraday low see $ 43.78. The two contracts fell for six weeks in the past seven weeks, with WTI crude down 3.9% last week and Brent crude down 2.5%.
Baker Hughes, an energy services firm, said last week that the number of active rigs in US energy companies increased by seven last week, increasing from 24 weeks in the past 25 weeks, with a total of 763 active rigs, the highest since April 2015 The Since mid-2016, US crude oil production has increased by more than 10% to 9.34 million barrels per day.
At the same time, OPEC crude oil supply is still abundant, although the organization promised in January this year to March next year, cut production. In June this year, OPEC crude oil exports amounted to 2,592 million barrels / day, higher than the 45 million barrels / day in May, an increase of 1.9 million barrels per day;
According to the Interfax news agency on Sunday (July 9), OPEC Secretary-General Balkin said that a ministerial committee to monitor OPEC's cut-off agreement would not discuss further cuts at its regular meeting on 24 July Possibility, but it is too early to do such a discussion.
OPEC and Joint OPEC-Non-OPECMinisterialMonitoring will meet on July 24 in St. Petersburg, Russia. The committee was established to monitor the global cut.
However, Citigroup senior energy analyst EricLee said the global oil demand growth and the Organization of Petroleum Exporting Countries (OPEC) supply reduction, may push oil prices before the end of the year rose to 60 US dollars / barrel.
Lee said the oil market speculators do not OPEC production agreement in the eyes of the details, the agreement provides the end of 2016 to cut production, rather than the time of the agreement announced. This allows the participating parties to increase production during the negotiations, meaning that the cut is starting from a higher production benchmark.
After oil prices jumped to $ 60 / bbl, Lee estimated that oil prices would continue to be flat in 2018 due to supply demand. He estimated that the price of oil rose above $ 60, but there was a significant political disruption in the oil-producing countries.