Equity World, NEW YORK – Oil prices fell about 2 percent, which is the biggest drop since mid-January,

stressed the strengthening dollar and signs of rising US crude oil production.

Reuters page launched on Tuesday (14/02/2017), the price of Brent crude futures lost $ 1.11, or 2 percent to US $ 55.59 per barrel.

While US crude West Texas Intermediate fell 93 cents, or 1.7 percent, to US $ 52.93 per barrel.

 

Equity World | Crude Oil Prices Down 2%

Both types of oil recorded the largest percentage fall since January 18. “Crude oil fell as a stronger dollar in the early session,

an increasing number of US rigs and increased productivity in the US shale basins,”

said James Williams, president of energy consultancy WTRG Economics in Arkansas.

On the other hand, investors are still waiting for the OPEC report would show high adherence member states related to the production cut deal last year.

Organization of Petroleum Exporting Countries (OPEC) and other producers, including Russia,

at the end of last year agreed to cut production by 1.8 million barrels of oil per day (bpd) during the first half of 2017.

The agreement aims to support the price and reduce the excess supply in the market ,

Data for the first monthly OPEC in January, since the deal showed that top producer Saudi Arabia has cut crude production in January.

But compliance is reportedly failed to report pushed oil prices into positive territory.

 

Equity World | Crude Oil Prices Down 2%

Oil prices are also affected by the strengthening dollar, which reached its highest level in three-week

high against a basket of other currencies. The dollar rose boosted by hopes of tax cuts.

On the other hand, the US shale oil production is expected to increase in five months.

Government data showed energy companies increase drilling as oil prices hovered above $ 50 a barrel.

Analysts at ABN Amro skeptical about OPEC production cuts give oil prices to a higher position,

and lowered its forecast if the Brent oil price for the first half of this year dropped to $ 50 from $ 55 per barrel.

read our news in Equity World