Oil falls on news of a potential output boost by OPEC and Russia

2019-04-15 14:16:36 GMT (Economies.com)
Oil falls on news of a potential output boost by OPEC and Russia

Oil prices fell on European markets on Monday, as Brent crude dropped from a five-month high on correction and profit taking, in addition to news of a production boost OPEC and Russia to cover production disruptions and to defend their market share against the United States, which has been pumping record levels of output.

 

By 09:55 GMT, US crude fell to $63.30 a barrel from the opening of $63.77, with a high of $63.82 and a low of $63.25.

 

Brent crude fell to $70.98 per barrel from the opening of $71.58, with a high of $71.58, and a low of $70.95.

 

US crude settled on 0.2% gain on Friday, the second gain in three days, while Brent crude futures were up by 0.8% on the highest level in five months at $71.85 per barrel.

 

The Libyan chairman of the National Oil Corporation (NOC), Eng. Mustafa Sanalla, warned on Friday that the renewed conflict could cut crude production in the country.

 

Oil prices rose an average of 1% over last week, their sixth weekly gain in a row, in the longest weekly gain streak since April 2018, due to OPEC Plus cuts and US sanctions on Iran and Venezuela.

 

Sources in the Organization of the Petroleum Exporting Countries (OPEC) said the group could increase production by next July if supply disruptions continue.

 

Russian Finance Minister Antoine Silwanov told the Tass news agency that Russia and OPEC might decide to increase production to defend market share against the United States, but that would push oil prices below $40 per barrel.

 

Official data showed on Friday that the US oil rigs and drilling platforms count rose by about 2 platforms last week, in its second consecutive weekly increase, bringing the total operating platforms in the oil fields to 833 platforms, the lowest level since the week ending on March 15.

 

As the US drilling activities increased, production levels have jumped more than 44% since mid-2016 to a total of 12.2 million barrels per day, the highest level of production ever in the United States.

 
 
 
  Symbol Last Change Chg.%
1.1145
-0.0099
0.8760%
1.2897
-0.0105
0.8053%
14.912
-0.092
0.617%
65.615
1.605
2.508%
74.57
0.06
0.08%
1273.690
-2.010
0.158%
 
 
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