Oil prices rose on Friday but continued to be near six-month lows, weighed down by a prevailing supply overhang that remained despite efforts by OPEC and other producers to lower production and shore up crude markets.
Brent crude futures traded at $47.12 per barrel, up 20 cents or 0.4 percent from their last settlement. Meanwhile, U.S. WTI crude futures traded at $4.56 per barrel, up 10 cents or 0.2 percent from their last close.
Traders said the slight rise in prices were due to the threat of a partial export halt in Libya.
Despite the rally, prices for both benchmarks are still down by almost 13 percent since May 25, when producers along with OPEC extended an agreement to lower production by 1.8 million bpd by nine more months until March 2018.
Increasing U.S. oil production is seen as one of the factors undermining the OPEC-led cuts. The high exports and crude output from Russia is also contributing to the persistent overhang. The top crude producing country is anticipated to ship 61.2 million tonnes of oil through pipelines in Q3, up from the 60.5 million tonnes in the previous quarter, industry data showed.
The material has been provided by InstaForex Company – www.instaforex.com