(MENAFN) On Monday, oil rates contracted amid uncertainties in supply following the production cut decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, coupled with concerns about demand in major oil consumers like the US and China.
The international benchmark crude, Brent, traded at USD78.10 per barrel at 11:07 a.m. local time (0807 GMT), marking a 0.99 percent decrease from the previous trading session's closing price of USD78.88 per barrel on Friday. Similarly, the American benchmark, West Texas Intermediate (WTI), traded at USD73.37 per barrel at the same time, reflecting a 0.95 percent decrease from Friday's close of USD74.07 per barrel.
During the 36th OPEC and non-OPEC ministerial meeting last Thursday, OPEC+ producers affirmed their previous output cut decisions, extending them until the end of the next year. Following the meeting, some members of the group individually introduced voluntary cuts, mostly extending existing output reductions.
In contrast, the US witnessed record-high production last month, with the oil rig count continuing to rise. According to data from oilfield services company Baker Hughes released on Friday, the oil rig count in the US increased by 5 during the week.
Despite these factors, industry experts anticipate that the OPEC+ group's output cuts will contribute to keeping the market tight.
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