Thursday , June 30 2022

OPEC, global raw production in the focus


Oil prices fell on Thursday as there were more concerns about the US registered output of returning a global overlap, talking about an OPEC conversation that production curbs could again become necessary to prevent glut.

The previous month of Brent's crude oil was $ 71.93 in barrel at 00301 GMT, down 14 cents from its last end.

The United States West Texas Intermediate (WTI) raw future was $ 61.68 per barrel, almost always from last settlement.

Benjamin Lu of Broceriaeth, Phillip Futures in Singapore, said, "Oil prices continue to show … bearish influences are about market concerns that arise in the global stock list. … (and as it is) increase output levels threatens to undergo supply foundations in Q4 2018. "

A group of producers around the Institute of Petroleum Exporting Countries (OPEC), which were mainly in the Middle East, and Russia, decided last June to relay output curbs in place since 2017, following pressure from US President Donald Trump to reduce prices oil and compensate for supply losses from Iran.

But with Iran sanctions now in place and oil is still in sufficient availability, OPEC led production cuts can not be ruled out next year, two OPEC sources said on Wednesday.

"OPEC and Russia can use cuts to support $ 70 per barrel," said Ole Hansen, the headship strategy of Saxo Bank.

"The introduction of US sanctions earlier this week against Iran failed to raise the market in mind of the announcement that eight countries, including three largest importers in the world, would accept waivers to continue to buy Iran's raw for up to six months, "says Hansen.

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