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Tuesday, November 30, 2021

Oil Struggles Near 6-Week Lows As OPEC, Russia Mull Output Boost

Oil Struggles Near 6-Week Lows As OPEC, Russia Mull Output Boost© Reuters. Oil Struggles Near 6-Week Lows

Investing.com – Crude prices continued to struggle near their lowest levels in around six weeks on Tuesday, amid expectations that Saudi Arabia and Russia would pump more oil to ease a potential shortfall in supply.

futures were up 26 cents, or around 0.4%, at $75.58 a barrel at 3:55AM ET (0755GMT), after sliding to their lowest since May 8 at $74.53 in the last session.

was down $1.21, or 1.8%, at $66.66 a barrel, sitting around its lowest since April 17.

The U.S. benchmark did not settle on Monday due to the Memorial Day holiday.

Concerns that Saudi Arabia and Russia could boost output to meet the shortfall in supply from Iran and Venezuela have put downward pressures on oil prices in recent sessions.

The Organization of the Petroleum Exporting Countries and non-OPEC producers led by Russia have been curbing output by about 1.8 million barrels per day (bpd) to prop up oil prices and reduce high global oil stocks. The pact began in January 2017 and is set to expire at the end of 2018.

OPEC is scheduled to hold its next meeting on June 22 in Vienna.

A relentless increase in U.S. drilling for new production further dampened sentiment.

U.S. drillers added 15 oil rigs last week, bringing the total count to 859, the highest number since March 2015, , underscoring worries about rising U.S. output.

Domestic oil production – driven by shale extraction – has already surged by more than 27% in the last two years, to an all-time high of 10.73 million bpd.

Only Russia currently produces more, at around 11 million bpd.

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Source: Investing.com

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