The last six weeks have seen a slight increase in oi8l prices but markets closed down today after an international disagreement about oil production rates.
Special Oil and Gas Assistant Larry Persily with the Kenai Peninsula Borough says it wasn’t long ago that prices were down to $27.00 per barrel.
Persily: “There’s some speculation in the market that maybe the worst is over, it’s not going to get a lot better but the worst is over. That’s certainly the opinion of some, not carved in stone yet.”
On Friday the U.S. oil benchmark had rebounded to $38.50 per barrel, with global Brent up to $40.39 a barrel. The International Energy Agency said the last few weeks of increasing oil prices indicate the market’s slump had bottomed out.
Today the market closed down three percent amidst concerns of global oversupply after Iran declined to abide by terms of a production freeze sought by nations who are members of the Organization of the Petroleum Exporting Countries (OPEC).
Last week the number of oil and gas rigs in the U.S. declined for the 12th consecutive week in a row, down to 480.
The International Energy Agency predicts that U.S. oil production will shrink by almost 530,000 barrels a day this year.
