Oil prices under pressure ahead of OPEC meeting

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Oil prices continued to decline as the US market opened on Thursday as Brent crude oil continued its losses for a third consecutive day, under pressure from strong prospects for OPEC and outgoing producers, led by Russia to increase production in the coming period. OPEC production.

By 12:25 GMT Brent crude was down $ 73.60 a barrel from the opening level of $ 74.45, recording a high of $ 74.67 and a low of $ 72.97.

US crude dropped to $ 64.80 a barrel from the opening level of $ 65.33 and recorded a high of $ 65.77 and a low of $ 64.33.

When global oil prices settled on Wednesday, Brent crude lost 1.1%, its second consecutive daily loss, on fears of global output growth.

Oil chart

Oil chart


Iran’s oil minister Bijan Zangneh said on Wednesday that his country agreed to a small increase in OPEC production at a meeting this week, and the member country of the Organization of Petroleum Exporting Countries (OPEC), previously opposed to increase production.

OPEC and some independent producers are meeting on Friday and Saturday in Vienna to determine production policy and make a final decision on the global supply reduction agreement.

Saudi Arabia, the world’s largest producer, and Russia, the non-member country of the world body, have proposed a gradual increase in production, while Iraq, Venezuela, Algeria and Iran oppose the move.

OPEC and independent producers are currently implementing a global deal to cut production by 1.8 million barrels and the deal is due to expire in December.

US crude rose 0.7% on Wednesday, the second gain in three days, after the weekly report of the US Energy Agency.

Yesterday, the Energy Agency announced a decline in trade inventories by 5.9 million barrels in the week ending June 15, exceeding experts’ expectations of a decline of 2.1 million barrels, the second consecutive weekly decline.

According to the data, total commercial inventories fell to the lowest level of the week ending March 30, in a positive sign of demand levels in the world’s largest oil consumer.

US production was flat last week, unchanged at 10.90 million barrels per day, the highest level ever for oil production in the United States.

US production has jumped more than 29 percent since mid-2016, surpassing Saudi Arabia’s current high of 10 million barrels per day , close to Russia’s biggest oil producer of around 11.1 million barrels.

 

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