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Oil becomes cheaper, American companies reduce production

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According to the report of the oil service company Baker Hughes, for the period from January 28 to February 1, US energy companies reduced the number of oil drilling rigs by 15 units, to 847 wells, the minimum in the last eight months.

Oil companies began to cut costs due to forecasts of a decrease in oil prices in comparison with 2018.

Today, the cost of futures for American oil WTI as of 17:00 Moscow time decreased by 1.21% to $ 54.59 a barrel.

The number of active rigs is an early indicator of the volume of future oil production. Currently, the indicator (847) is significantly higher than last year's (765), as the company in 2018 significantly increased production against the backdrop of an increase in the price of oil on the world market.

The material has been provided by InstaForex Company - www.instaforex.com