Oil prices have remained near multi-month lows as global market remained oversupplied despite evidence of strong compliance by OPEC and non-OPEC producers to reduce output.
Global benchmark Brent LCOc1 remained unchanged at $46.02 a barrel after a 2% drop in the previous session, while the US crude futures CLc1 grew by 4 cents to touch $43.55, reported Reuters.
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Brent is trading at nearly seven-month lows while US crude is at its lowest level since last September. This has completely negated OPEC’s and other producers’ deal to reduce oil output by 1.8 million barrels per day.
Output compliance level among OPEC members and other nations was reported to have reached its highest level in the last month.
Forex.com market analyst Fawad Razaqzada was quoted by the news agency as saying: “The lack of a positive response in oil prices clearly suggests market participants are not convinced that the OPEC's efforts will help shore-up prices in a meaningful way in the short-term as shale supply continues to rise in the US.”
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A source told Reuters that compliance level among OPEC members was 108% while among other producers, it was 100%.
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By GlobalDataThe American Petroleum Institute stated in its weekly report that US crude stockpiles had dropped more than predicted but gasoline and distillate inventories had grown.
The official government report is scheduled to be published later.
Image: Offshore oil platform. Photo: courtesy of QR9iudjz0/ FreeImages.com.
