Energy Diplomacy
Global oil prices seek balance on Monday
- US rising oil output and boost in rig numbers keep downward pressure on oil prices

International benchmark Brent crude oil price fell by 0.27 percent to $47.24 while U.S. WTI decreased by 0.31 percent to $44.68 at 06.28 GMT on Monday.

On Friday, Brent crude oil price closed at $47.37 while U.S. WTI was around $44.97.

The number of oil rigs in the U.S. continued its increase last week, according to the oilfield services firm Baker Hughes' data on Friday. The American oil industry added six more oil rigs this week, Baker Hughes said, marking the 22nd consecutive week of rises in the oil rig count. The total number of oil rigs in the country reached 747.

In addition, oil production in the U.S. increased 15 times in the past 17 weeks. Crude output in the country reached 9.33 million barrels per day (bpd) for the week ending June 9, Energy Information Administration (EIA) data showed Wednesday. The EIA forecasts crude production in the country to average 9.3 million bpd this year, and 10 million bpd in 2018, according to its Short-Term Energy Outlook report for June.

In the meanwhile, according to International Energy Agency data on Wednesday, global oil supply increased by 585 thousand barrels per day in May to 96.69 million barrels per day (mb/d) compared to the previous month.

OPEC crude oil output rose by 290 thousand b/d to 32.08 mb/d in May, "the highest level so far this year, after comebacks in Libya and Nigeria, which are exempt from supply cuts," the IEA said. The IEA added that compared to May 2016, OPEC crude production was down 65 thousand b/d.

By Gulsen Cagatay

Anadolu Agency

19 Jun,2017