Oil Prices Below Its Highest In 2 Years

Oil Prices Below Its Highest In 2 Years

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Liputan6.com, New York – World crude oil prices vary over the weekend. Prices are still below the highest level in two years. Reduced supply on the North Sea pipeline and OPEC production cuts are the cause. As well as rising output in America pushed up oil prices in the country.

Reported by Reuters on Saturday (12/16/2017), Brent crude oil prices fell 9 cents to US $ 63.22 per barrel. Meanwhile, US West Texas Intermediate (WTI) crude oil futures rose 23 cents to US $ 57.27 per barrel.

The WTI price hit a two-year high of $ 59.05 on Nov. 24. "There is a fight in the market," said Gene McGillian, Senior Analyst Tradition Energy in Stamford, Connecticut.

He said, speculators have been lurking long and are betting that production cuts will continue to eliminate oversupply from the market.

"Speculators seem unmoved, they have been up to a certain extent for a while here so it seems they are continuing to press that position," added Rob Haworth, Senior Investment Strategist at Wealth Management Bank of the US.

Analysts at Barclays said the level of oil inventories in industrialized countries reached 2 percent below the five-year average in early December. This is lower than before which is 10 percent above the five-year average in early 2017. The trigger is the reduction in production and demand growth.

On the other hand, US oil production appears to be rising in response to price increases. US oil production has jumped 16 percent since mid-2016 to 9.78 million barrels per day (bpd). This increase has undermined OPEC oil production bottlenecks.

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