-0.5 C
New York
Tuesday, November 30, 2021

Oil Prices Tumble As Supplies From Top Three Producers Set To Rise

Oil Prices Tumble As Supplies From Top Three Producers Set To RiseOil prices fell on Monday morning in Asia

Investing.com – Oil prices fell on Monday morning in Asia as the market eyed an increase in output from the world’s three top crude producers, Russia, the U.S. and Saudi Arabia.

 for July delivery were trading at $66.17 a barrel at 11:00PM ET (03:00 GMT), down 2.52%. for July delivery, traded in London, were down 2.11% at $74.86 per barrel.

for September delivery were down 4.87% at 457.20 yuan ($71.89) per barrel.

The Organization of the Petroleum Exporting Countries (OPEC) as well as a group of non-OPEC producers led by Russia started withholding output in 2017 to boost oil prices and clear a supply glut. The group had agreed to curb their output by about 1.8 million barrels per day (bpd).

Prices have soared since the start of the cuts, with Brent breaking through $80 per barrel earlier in May. The pace of the recent rise in oil prices has sparked a debate among investors on whether this poses downside risks to global growth.

Russia, in particular, has shown eagerness to end the production cuts, with energy minister Alexander Novak saying last Thursday that restrictions on oil production could be eased “softly” if OPEC and non-OPEC countries see the oil market balancing in June.

U.S. sanctions against Iran, which produces 4% of global oil supplies, will likely cause shortages later this year when trade restrictions take effect. Production in Venezuela has also plunged to its lowest level in decades due to its ongoing economic crisis.

To address potential supply shortfalls, Saudi Arabia, de-facto leader of OPEC, as well as Russia said on Friday they were discussing raising oil production in the second-half of the year by some 1 million bpd.

Meanwhile, surging U.S. crude production also showed no sign of abating as drillers continue to expand their search for new oil fields to exploit.

U.S. energy companies added 15 rigs looking for new oil in the week ending May 25, bringing the rig-count to 859, the highest level since 2015, in a strong indicator that American crude production will continue to rise.

U.S. crude oil production has risen by more than a quarter in the last two years, to 10.73 million bpd, inching ever closer to top producer Russia’s output of around 11 million bpd.

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

Related Articles

Stay Connected

10,920FansLike
12,893FollowersFollow
752FollowersFollow
- Advertisement -

Latest Articles

Popular Articles