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Brent crude and West Texas Intermediate are trading higher today.Brent Crude added +0.54%, currently trading at USD48.42 a barrel, still below the important USD50 level. On January 13th Crude hit a low at USD45.19. West Texas Intermediate rose by +0.40% currently quoted at USD45.33.
Yesterday, Gary Cohn, president of Goldman Sachs and a former oil trader said prices could reach a level of USD30.
Prices were under pressure recently as Saudi Arabia's new King Slaman assured a smooth transition and reaffirmed that there will be no change in Saudi Arabia's policy towards cuts in production. Ali al-Naimi will stay oli minister. The OPEC warned that low oil price may lead to a decline in investment and oil prices could spike in long term due to reduced output.
Oil prices fell by nearly 60 percent over the past six months, and both key brands of oil are currently trading below $ 50 a barrel as the worldwide supply exceeds demand in a period of low global economic growth and the OPEC refusing to cut output rates to stabilize prices. Smaller OPEC members want to cut production but the organisation, responsible for 40% of worldwide production focuses on its fight for market share.
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