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World oil prices continue to decline

June 21, 2017/ 10:48

New York. World oil prices continue to fall on June 21 after dropping to a seven-month low a day before due to concerns over the non-compliance with the OPEC oil output cut deal, Trend agency reports.

The price for August futures of Brent crude oil has decreased by 0.20 percent to $45.93 per barrel as of 06:22 (GMT +4).

This is while the price for July futures of West Texas Intermediate (WTI) has dropped by 0.11 percent and stood at $43.46 per barrel.

The concerns over the possibility of failing to reach the targeted level of cuts are due to the growing volume of crude output by Libya and Nigeria.

Two OPEC members not included in the deal have recently seen increases in production: Libya's output has reached nearly 800,000 b/d, a level not seen since 2014, and Nigeria has announced the lifting of force majeure for Forcados exports, potentially making available to the market more than 200,000 b/d, the International Energy Agency (IEA) said in its report.

On May 25, OPEC member countries and non-OPEC parties, Azerbaijan, Kingdom of Bahrain, Brunei Darussalam, Kazakhstan, Malaysia, Mexico, Sultanate of Oman, the Russian Federation, Republic of Sudan, and the Republic of South Sudan agreed to extend the production adjustments for a further period of nine months, with effect from July 1, 2017.

The reductions will be on the same terms as those agreed in November.

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