Oil prices decline on Tuesday after the fall of global stock markets against the backdrop of the strengthening of the U.S. dollar.
Brent crude futures were down 35 cents on the day at $67.27 a barrel, still up 1 percent so far in 2018, U.S. West Texas Intermediate (WTI) crude futures eased by 25 cents to $63.90, Reuters reported.
Strengthening of the dollar is an unfavorable factor for commodity assets, prices of which are denominated in U.S. currency, as it increases the value of these assets for holders of other currencies.
Data of the U.S. Energy Department on fuel stocks in the U.S. in the past week may indicate an increase in oil reserves by 2.5 million barrels, experts of Price Futures Group predict.
The production of oil in the U.S. in November exceeded 10 million barrels per day for the first time in almost 50 years.
Meanwhile, President of Venezuela Nicolás Maduro said about the stabilization of oil prices against the backdrop of well-coordinated actions of the OPEC + countries.
“Prices in the oil market entered the stabilization phase,” Maduro said after meeting in Caracas with OPEC Secretary General Mohammed Barkindo.
Maduro considers it possible to work out a joint cryptocurrency mechanism for all OPEC members and other major oil producers.
“I will make an official proposal to all OPEC members and non-OPEC states to work out a joint cryptocurrency mechanism backed by oil,” Maduro told reporters in Caracas on Monday after a meeting with the OPEC secretary general.
“I want the Joint OPEC-Non-OPEC Monitoring Committee to operate for at least five more years as we have already had great achievements,” said Maduro.
The next meeting of the OPEC + countries will be held on June 22 in Vienna.
In November 2016, the OPEC summit was held in Vienna, where OPEC members reached an agreement on reducing oil output by 1.2 million barrels per day. In December 2016 was a meeting of oil producers outside the OPEC. The meeting ended with signing an agreement to reduce oil production by a total of 558,000 barrels per day starting from January 2017.
OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.
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