Oil prices rose again boosted by a weaker dollar but worries over an ongoing supply glut capped gains. According to Reuters, Brent crude futures had gained 25 cents to $46.08 per barrel. US WTI crude futures were up 23 cents at $43.61 per barrel. Oil prices have weakened significantly over the last month.
The Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries, led by Russia, have been trying to reduce a global crude glut with production cuts. In May, OPEC and non-OPEC countries agreed to extend cuts of 1.8 million barrels per day until March 2018. Russia accounts for 300,000 barrels.
Despite the cuts, which started in January, markets remain well supplied due to rising output elsewhere, Reuters reported, noting that OPEC members Nigeria and Libya are exempt from the cuts and have raised production. OPEC member Iran was also allowed a small increase to recover market share lost under Western sanctions over its nuclear programme.
Russia’s Deputy Energy Minister Kirill Molodtsov said on June 27 that Russia fully complies with the terms of the agreement on oil production cap between OPEC and non-OPEC nations at the moment.
“The Russian Federation fully complies with all parameters offered,” TASS quoted Molodtsov as saying.