By: Mahmoud Gamal
Mubasher: Oil prices fell from its highest level in a year on Tuesday, affected by the anticipation for the sufficiency of the US production of oil shale to limit the effect of OPEC and Russia's production cut agreement.
By 04:05 GMT, Brent crude oil futures shed 0.09% or 5 cents to $54.87 per barrel, while West Texas Intermediate (WTI) increased 0.17% or 9 cents to $52.98 per barrel.
US oil production is expected to rise with the continuation of the energy companies in a week to increase the oil rigs for the drilling activities to keep its rising wave started seven months ago, which negatively affects the market and prices, technical analyst, Zamil Al Otaiby, told Mubasher.
A week ago, oil prices hit its highest levels in 17 months, after OPEC and non-OPEC producers agreed to cut production by 1.8 million barrels daily as of next January.
On 30 November, OPEC agreed to cut its own production by 1.2 million barrels daily as of next January, while Russia and Non-OPEC producers agreed on reducing the production by half.
Al Otaiby expected oil prices to stay strong and reach the levels of $55-60 by the beginning of 2017, in the light of OPEC's commitment to apply the agreement.
Translated by: Sara Ghali
