Oil Prices Slump Amid Rising Trade Concerns

© Reuters.  Oil was lower on Friday. © Reuters. was lower on Friday.

Investing.com – Oil prices slumped on Friday as the possibility of increased OPEC production and trade war concerns weighed on investor sentiment.

decreased 1.45% to $65.92 a barrel as of 10:02 AM ET (14:02 GMT). Meanwhile futures, the benchmark for oil prices outside the U.S., slumped 1.83% to $74.55.

U.S. President Donald Trump on $50 billion of Chinese goods on Friday, with threatening to respond.

The two largest economies in the world have been in a tit-for-tat over global trade tariffs in recent months as the two struggle to reconcile their trade differences. The tariffs have increased chances of a full-blown global trade war as the European Union and Canada have voted to retaliate against U.S. metal tariffs.

Article continues below Advertisement...

Meanwhile the Organization of the Petroleum Exporting Countries and countries is set to meet in Vienna on 22 and will discuss a possible supply increase of one million barrels per day, as OPEC faces losses from Venezuela and Iran.

After a meeting with the Saudi Arabia energy minister on Thursday, Russian Energy Minister Alexander Novak said that both of the countries agreed that production levels should increase.

Total production of OPEC countries rose by 35,000 barrels per day (bpd) in May to 31.87 million bpd, according to its monthly report.

OPEC has been cutting crude output by 1.8 million bpd to prop up oil prices. The pact began in January 2017 and is set to expire at the end of 2018.

Traders are also looking ahead to the weekingly for any indication of increasing U.S. supply.

In other energy trading, decreased 1.77% at $2.0565 a gallon, while fell 1.73% to $2.1214 a gallon. were up 1.52% to $3.010 per million British thermal units.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, is one of the riskiest investment forms possible.

Source: Investing.com