Thursday , May 19 2022

OPEC, global crude production in focus


Oil prices fell on Thursday, as record US oil output increased fears of a return to global supply surpluses, while talking from OPEC that curb production might be needed again to prevent a turnaround.

Brent crude futures were trading at $ 71.93 a barrel at 00301 GMT, down 14 cents from the last close.

US crude oil contracts in West Texas (WTI) stood at $ 61.68 per barrel, almost flat from the last settlement.

Lu Lu's brokerage Phillip Futures in Singapore said that overall, "oil prices continue to manifest … Bearish effects within global market concerns and rising … (and) increasing production levels threaten to hit supply fundamentals in the fourth quarter of 2018. "

A group of producers around the world, controlled by the Middle East of the oil-exporting countries (OPEC) as well as Russia has decided last June to relax sidewalks in place since 2017, after pressure from US President Donald Trump to reduce oil prices and compensate for the supply of losses from Iran .

However, with Iran, the existing sanctions and oil still available in abundance, the explosions could not be ruled out by OPEC next year, two OPEC sources said yesterday.

"OPEC and Russia may use a cut to support $ 70 a barrel," said Ola Hansen, head of commodity strategy at Saxo Bank.

"The announcement of US sanctions earlier this week against Iran did not raise the market in light of the announcement that eight countries, including the world's three largest importers, would be given concessions to continue buying Iranian oil for up to six months," Hansen said.

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