Published: Tue, March 07, 2017
Economy | By Melissa Porter

Oil prices have fallen on worries China will cut demand

The oil output deal between 24 countries provided strong support to USA production, leading to a growth of 132 rigs since OPEC and non-OPEC members signed an output cut deal of 1.8 million barrels per day.

Oil fell in NY as clashes between armed factions in Libya curbed crude output, while US drilling increased.

According to Energy Ministry, in February Azerbaijan produced 726,400 b/d of crude oil and 50,000 b/d of condensate, exported 604,100 b/d of crude oil, 50,000 b/d of condensate and 26,800 b/d of oil products.

Before the start of the OPEC-non-OPEC deal in January, Azerbaijan was producing around 829,100 bpd of oil, according to AzerNews.

And while they are meeting data could show that U.S. oil production has topped or come close to matching production for a year ago - around 9.08 million barrels a day.

BHP Billiton has boosted investment in its shale operations since last fall, forecasting the sector to become the single largest generator of cash flow for its petroleum business within five years.

That has shown the number of U.S. drilling rigs in use has grown 92% to 609 in just over nine months, while the total number of rigs in use (including gas) has soared 85% to 756.

Gasoline futures rose 1.92 cents, or 1.16 %, to $1.6723 a gallon - their second highest settlement value of the year.

The country's energy ministry said today that a letter it had received from the Joint Monitoring Committee praised the country for complying "214 percent" with its share of cuts.

Demand concerns and expectations for increased United States oil supplies also dented oil prices. Saudi oil minister Khalid A. Al-Falih speaks Tuesday. "That's very premature at the moment.That's a long time in this market", he said. OPEC compliance has reportedly been strong, but it remains to be seen whether it will be enough to meaningfully reduce abnormally high inventories.

"The market's expectations that Russian Federation will cut its oil output has not yet happened". An agreement before then for an extension of the agreement until next November could be the trigger.

There was additional pressure from rising dollar.

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