More Oil Supplies Pushes Price Down

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crude oil tanker
crude oil tanker

Oil prices lost Monday amid growing supplies from the United States and the Organization of Petroleum Exporting Countries (OPEC).

Trucks carrying petroleum products cross the border at Gatuna. Low oil prices could hurt exports of raw materials. (File)
Trucks carrying petroleum products cross the border at Gatuna. Low oil prices could hurt exports of raw materials. (File)

For the week ended Feb. 20. U.S. crude production reached 9.285 million barrels a day, the highest level since 1983, according to the Energy Information Administration (EIA), the Energy Department ‘s statistical arm.
U.S. crude stockpiles increased 8.4 million barrels to 434.1 million, 71.7 million barrels more than a year earlier in that week.
The OPEC decided to maintain its collective output quota at 30 million barrels a day at the Nov. 27 meeting in Vienna.
There was no sign that producers would cut output in response to the slump. The OPEC increased output to 30.6 million barrels a day in February, according to a Bloomberg survey. Saudi Arabia’s crude output added 130,000 barrels to 9.85 million barrels a day.
Crude prices lost also because the U.S. dollar appreciated against other currencies Monday. A stronger greenback makes the dollar-priced crude more expensive and less attractive for buyers holding other currencies.
Light, sweet crude for April delivery lost 0.17 U.S. dollars to settle at 49.59 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery moved down 3.04 dollars to close at 59.54 dollars a barrel. Enditem

Source: Xinhua

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