Oil on the stock markets made slight gains on Friday, in spite of a build- up of global glut increases.
The gains in oil were still at a six month low, but the threat of a partial halt in exports by Libya as political conflict ravages the country saw oil make the slight gain. According to sources the ability of Libya to pump more oil has been limited because of the availability of foreign staff, many are reluctant due to the security situation.
Brent crude futures gained 0.4 percent or 20 cents at $47.12 per barrel.
West Texas Intermediate crude futures gained 0.2 percent or 10 cents at $44.56 per barrel.
The weekly increase in US shale drillers is also contributing to the output glut. Senior market analyst at OANDA in Singapore, Jeffrey Halley said that the ineffectiveness of the OPEC cuts is because of the rising US oil output by shale drillers.
OPEC members agreed to extend the oil cuts by 1.8 million barrels per day for a further 9 months at a meeting in May in an effort to prop up crude markets.
The weak compliance by Iraq and the United Arab Emirates and the increase in production in Nigeria and Libya together with the increase with additional count of US rigs on a weekly basis have all contributed to the low prices, according to US investment bank.
The Energy Information Administration said that over the past year oil output production has risen 9.3 million barrels per day and that in 2018 they expect it to rise to 10 million barrels per day.
Russia who is not an OPEC member is expected to export 60.5 million tonnes for the 2nd quarter with an expected increase of around 5 million barrels per day for the 3rd quarter. This together with their tanker shipments will make a total of 9 million barrels per day, this is also contributing to the global glut.
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