West Texas Oil Production
“Since the Saudis and Russia reached an agreement to freeze output, volatility in the market has eased and oil prices have stabilized with the focus shifting back to fundamentals,” said Hong Shug Ki, a senior analyst at Samsung Futures, Inc. “More stable oil prices are expected in the coming months, possibly up to the $40 level…”
West Texas Intermediate crude climbed more than 30 percent since dropping to lowest level in 12 years. The pricing on Monday was just short of $36 per barrel.
A contributing factor may be that U.S. production slid for the sixth straight week ended February 26 to 9.08 million barrels a day, the lowest level since November 2014, according to the Energy Information Administration.
Key members of OPEC intend to meet with other producers in Russia this month to renew talks on the freeze deal according to Emmanuel Kachikwu, Nigerian Minister For Petroleum Resources.