Oil futures fell by about 2 percent coming under pressure because of the increase in reports of oil production in the Middle East.
On Saturday, Iraqi Oil Minister said that his country will continue to increase oil production. In addition, two officials of the state-owned South Oil Company said that oil exports from Iraq’s southern ports reached an average of 3.205 million barrels per day in August, exceeding the average of July (3.202 million. Barrels per day). Recall, Iraq is one of the main producers of crude oil in the world, ranking second in its production among the member states of the Organization of Petroleum Exporting Countries (OPEC). “The uncertainty of oil price prospects is high enough, – said Robert Bosley of Boslego Risk Services – the oil reserves continue to reach new highs and it is not yet clear whether OPEC members intervene in the market if the prices will drop back to $ 40.”
Recall OPEC countries are planning to hold an informal meeting on the sidelines of the 15th International Energy Forum in Algeria. At that meeting, OPEC is likely to resume negotiations on freezing oil with countries within and outside the cartel. On Friday, Iran’s oil minister said that Iran will help other oil producers to stabilize the world market, if other its market share will be restored. Iran is the third largest producer in OPEC to increase production after the removal of Western sanctions in January.
The cost of the October futures for WTI fell to 46.82 dollars per barrel.
October futures price for North Sea petroleum mix of mark Brent fell to 49.35 dollars a barrel on the London Stock Exchange ICE Futures Europe.