Oil prices rose today ahead of a discussion between OPEC and US shale firms in Houston to cut down global oil glut.
While international benchmark Brent crude grew 19 cents to touch $64.56 a barrel, US West Texas Intermediate (WTI) crude increased 17 cents to reach $61.42 per barrel, reported Reuters.
Ministers of Organization of the Petroleum Exporting Countries (OPEC) and other oil producing nations, and US shale firms are expected to meet today in Houston, Texas, on the sidelines of the energy industry meet CERAWeek.
Futures brokerage OANDA head of trading for the Asia-Pacific region Stephen Innes was quoted by the news agency as saying: “OPEC and Non-OPEC alliance remain at record high compliance, but with Russia continually pressuring for an exit strategy, OPEC will look to offer an olive branch to US shale.
“As such, we should interpret any positive developments from the meeting as support for underlying oil price sentiment.”
On Sunday, UAE oil minister and OPEC’s current president Suhail Mohamed Al Mazrouel stated that the group has not yet discussed on extending production cuts until 2019.
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An increase in the shale oil production in the US has been negating the efforts of OPEC’s production cuts to reduce oil glut and push up prices.
Crude oil production from US has already grown, beating Saudi Arabia. Its current production has touched 10.28 million barrels per day (bpd) and expects to beat Russia to become the world’s biggest crude oil producer by 2019.
This month, the count of new oil rigs in the US grew to 800 since April 2015, indicating a further increase in production in the days to come.