Global Oil Prices Begin to Decline

Saudi Arabia has decided to limit oil production by 1 million barrels per day. In contrast, Iraq has increased raw material exports, despite its commitment as a member of the Organization of the Petroleum Exporting Countries (OPEC) to reduce production.

The support factor has weakened due to severe cold weather causing disruptions in U.S. crude supply. Market data indicates this trend on Friday morning.

Specifically, April futures for Brent crude have fallen by $0.85 (1.33%) in the London ICE Futures market, reaching $63.08 per barrel. Meanwhile, March futures for WTI have decreased by $1.00 (1.65%) in the New York trading market (NYMEX), now priced at $59.52 per barrel. Just a day earlier, prices had dropped by $0.62 (1%).

According to Western news agencies, Saudi Arabia, which voluntarily committed to halt oil production by 1 million barrels in February and March, now plans to increase production in the coming months. Advisors to the country’s authorities have stated that Riyadh is preparing to abandon the cuts and intends to announce this during the OPEC meeting in March.

Oil prices are primarily being influenced by reports of increased production in Iraq and hopes for the restoration of electricity supply in Texas, USA.