Oil prices Fall as Saudi Vows to Prevent Further Conflict in Middle East

© Reuters.  © Reuters.

Investing.com – Oil prices fell on Wednesday in amid comments by Saudi Arabia that said it would “do everything in its power” to prevent further conflict between Iran and the U.S.

U.S. were down 0.9% at $62.58 by 12:51 AM ET (04:51 ). International dropped 0.6% to $71.72.

Saudi Arabia “will do everything in its power to prevent any war and its hand is always extended to peace,” a cabinet statement said, adding the government was committed “to achieving balance in the (oil) market and working toward its stability on a sustainable basis.”

The Sino-U.S. trade war was also cited as a headwind for the oil market.

Article continues below Advertisement...

Earlier Tuesday, the Organization for Economic Co-operation and Development cut its estimate for global growth in 2019 to 3.2%, from 3.3% and warned that the trade spat between Beijing and Washington is the main threat to the growth outlook.

Oil has swung between gains and losses this month as investors assessed conflicting signals from members of the Organization of Petroleum Exporting Countries and its allies.

Khalid Al-falih, the Saudi energy minister, indicated over the weekend that the kingdom will continue cutting output through the year-end at above compliance agreed by OPEC+.

On the other hand, comments by the Minister of Energy of Alexander Novak who said OPEC+ may need “to tweak” the current production deal when it meets next month were said to be pulling oil prices down.

One option on the table is “removing the over-compliance” with current targets, Novak said, a move that would effectively ease output cuts in the second half of the year.

Meanwhile, the American Petroleum Institute reported that U.S. crude rose by 2.4 million barrels last week, compared with analysts’ expectations for a decrease of 599,000 barrels.

Official data from the U.S Energy Information Administration’s oil stockpiles report is due later on Wednesday.

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, it is one of the riskiest investment forms possible.

Source: Investing.com