Oil is falling on Monday after a sharp rise amid the results of OPEC meeting on Friday. However, oil started to lose in price again, as traders are disappointed because the USA is expected to increase oil production.
February Brent futures were 36 cents or 0.56 % down, at 63.37 on Monday morning. At the end of London ICE Futures trading session on Friday evening, the contracts price went up by 1.1 dollars or 1,76 %, to $63.73 a barrel.
January WTI futures were 43 cents or 0.74% down, at 57.93 on Monday morning. The contract price went up by 196 cents or 1.67%, to $58.35 a barrel at the end of NYMEX trading session on Friday evening.
WTI is going down at the beginning of the week, having lost 1% since last Friday. Brent has grown in price by 0.4%.
At OPEC meeting in Vienna on Friday 30th, partners agreed to extend oil production cut through December, 2018.
At the same time, OPEC global plans can be set back by the USA, where the shale oil output is increasing. Baker Hughes reported the number of U.S. oil rigs to double, it’s the highest since September, 2017, 149. Will Yun, a commodities analyst at Hyundai Futures Corp said to Bloomberg "As long as U.S. shale suppliers exist, it will be hard to see further gains in oil prices from now on."