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OPEC Reports Drop in Crude Oil in February, Ups Non-OPEC Supply Forecast

Published 03/14/2018, 09:07 AM
© Reuters.  Crude oil production fell in February.
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Investing.com- Crude oil production fell in February while the forecast for non-OPEC supply over the next year rose, the Organization of the Petroleum Exporting Countries and Russia stated in its monthly report.

Oil production fell by 77,000 barrels per day (bpd) in the last month, to an average of 32.19 million barrels per day, the report said.

Meanwhile the organization said non-OPEC supply growth for 2018 was forecast at around 1.60 million barrels per day compared to 1.40 million barrels per day prior.

OPEC said its efforts to cut supply continued to support rebalancing the market. The price of oil has been caught between a supply agreement by OPEC and the rise in U.S. crude. The U.S. overtook Saudi Arabia as the biggest oil producer in January. The news eased investor concern that the rise in U.S. crude could dampen the efforts made by OPEC to end a supply glut.

OPEC agreed in December to cut oil output by 1.8 million bpd until the end of 2018. The agreement was due to end in March 2018, having already been extended once.

After the report, U.S. West Texas Intermediate (WTI) crude futures rose 0.69% to $61.13 a barrel by 9:06 AM ET (13:06 GMT).

Brent crude futures, the benchmark for oil prices outside the U.S., increased 19 cents, or 0.29 %, to $64.83 a barrel.

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