Oil prices slump as OPEC, Russia mull output boost

Oil prices slump as OPEC, Russia mull output boost

The abrupt reversal interrupted a surge in the American benchmark from less than $50 a barrel last fall to over $70, largely because of the collapse of Venezuelan oil production, the withdrawal of the United States from the Iran nuclear deal and stronger global demand for energy.

Pressure has been on the rise since the International Energy Agency published its monthly report acknowledging that the oil market was now balanced and that commercial glut in major industrial countries fell by about 1 million barrels.

The Organization of Petroleum Exporting Countries (OPEC) may decide at its meeting in June to increase oil output to make up for reduced supply from Iran and Venezuela and in response to concerns from Washington over a rally in oil prices, OPEC and oil industry sources told Reuters. Meanwhile crude oil futures decreased 2.73% to $68.78 a barrel.

SBI Capital Markets said in a recent report that rising crude oil prices may worsen the country's Current Account Deficit (CAD) to 2.5 per cent in the present financial year from an estimated 1.9 per cent in the last financial year.

Richie Incognito psychiatric examination: G taken into custody
But the Bills released him from their reserved/retired list Monday, leaving open the possibility he could sign with another team. Because of Incognito's "muscular frame", officers said they used two sets of handcuffs linked together and double locked them.

On Friday, the Saudi oil minister, Khalid al-Falih, said producers had already begun consultations.

"But a decision will be made in June", he added, referring to a meeting between OPEC and non-OPEC countries in Vienna. Saudi Arabia is concerned the de facto leader of OPEC.

More worryingly for investors betting on a sustained rise in the crude oil price, inventories of gasoline rose 1.9 million barrels in the same week, just ahead of the Memorial Day holiday in the United States, which typically marks the start of the summer driving season. The pact began in January 2017 and is set to expire at the end of 2018.

Prices were also held back by geopolitical concerns, including impeding US sanctions against Iran, which produces 4% of global oil supplies. One option is to look at a longer-range, a 10-year average from 2004 to 2014, while another is to use the five-year average but exclude data from 2015 and 2016 because those were years of abnormally large stockpiles, the people said. The weekly instalment of drilling activity from Baker Hughes will provide investors with fresh insight into USA oil production and demand. The data from the statistical arm of the oil ministry also shows the country's total crude oil import bill in the current financial year (2018-2019) is expected to jump 24 per cent to $109 billion from Dollars 88 billion last fiscal year. Natural gas futures was up 0.48% to $2.954 per million British thermal units.

Related Articles