This decision was made to put more supply into the world oil market in order to tame the cost of crude.
Crude oil prices moved higher on Friday, recovering from recent losses, after upbeat exports data from China and the rally in stock markets helped ease concerns about economic slowdown and allay fears about demand growth.
West Texas Intermediate crude for November delivery advanced 37 cents to end the session at $71.34 a barrel on the New York Mercantile Exchange. Despite that unimpressive recovery, the barrel of WTI lost $3 this week.
"The demand outlook is hurt right now because of the situation with the United States and China in particular".
McTeague says there are a number of other factors also driving down prices, including a large refinery shut down in the USA that usually buys a lot of Canadian crude.
SOU celebrate Indigenous Peoples Day
Seventy-six other counties and cities have adopted official recognition of Indigenous Peoples Day instead of Columbus Day. The legacy of Columbus, which once hinged on and celebrated his exploration of the New World, has shifted in recent years.
Wall Street extended its slide into a sixth session and a global equity index fell to a 1-year low on Thursday as investors feared an escalating USA trade war with China and risks from a recent climb in interest rates. Producers in the so-called OPEC+ coalition, which also includes Russian Federation, have added 1.6 million barrels a day since May, the report showed.
"In June, members of OPEC, along with Russian Federation, agreed to increase oil production levels to the original crude oil production target set in November 2016", said the report".
"The bearish alarm bells are ringing for next year's oil balance as market players brace for the return of a supply surplus", said Stephen Brennock of oil broker PVM.
In the U.S. Gulf of Mexico, producers had cut output by 40 percent on Thursday due to Hurricane Michael, even as some operators began returning crews to offshore platforms. The Bloomberg Commodity Index had its first back-to-back drop in three weeks on Thursday as oil and aluminum prices plunged, and is on course for the first weekly drop in four weeks.
Michael made landfall in Florida on Wednesday as the third most powerful hurricane to strike the USA mainland, though it has since weakened to a tropical storm.