Oil prices fluctuated again today on the world market as the prices went up to about $50, which shows that there is rise in the production of crude oil in the United States.
There were different prices for different crude oil products as the WTI (West Texas Intermediate) crude futures CLc1 were selling 1 cent more at $47.08 a barrel, while the international benchmark LCOc1 was sold for # 7 cents more at $49.61 per barrel.
The deals for these companies was on the market for a much lower price as a lot of traders closed their positions before the Independence Day celebration. Brent was also faced with some technical issue as their price went close to $50 on Monday.
In spite of this, the market has witnessed quite a number of changes.
In May and June, there was a huge crude production in the United States and this called to question the capability of the Organization of the Petroleum Exporting Countries holding back production to increase prices.
But the sentiment shifted during the month of June as data showed a reduction in the oil output in the United States and a slight reduction in drilling activities to discover new production.
OPEC in a production dilemma
However, there are indications that prices may rise in spite of the fact that OPEC has hit it set production for 2017 as production went up to a record 32.72 million barrels per day in the month of June.
The move by the group to balance the market has not gone so well due to high production from both Nigeria and Libya as they have been exempted from production cutting deal.