24/05/2018 08:01 AST

Oil prices fell on Thursday on expectations that OPEC members will step up production in the face of worries over supply from both Venezuela and Iran. A surprise build up in crude oil inventories in the United States also weighed on prices, driving the spread between Brent crude and US West Texas Intermediate (WTI) close to its widest in three years.

International benchmark Brent futures were down 27 cents, or 0.34 percent, at $79.53 per barrel at 0300 GMT. US West Texas Intermediate (WTI) crude futures were down 17 cents, or 0.24 percent, at $71.67 a barrel.

The Organization of Petroleum Exporting Countries (OPEC) may decide to increase oil output to make up reduced supply from Iran and Venezuela in response to concerns from Washington over a rally in oil prices, OPEC and oil industry sources told Reuters.

Supply concerns in Iran and Venezuela following new US sanctions had pushed both Brent and WTI to multi-year highs, with Brent breaking through an $80 threshold last week for the first time since November 2014.

“The chat is still that OPEC will do something at its June meeting in reaction to the looming prospect of a fall in crude production and exports from both Iran and Venezuela as the year progresses,” said Greg McKenna, chief market strategist at CFD and FX provider AxiTrader.

OPEC and some non-OPEC major oil producers are scheduled to meet in Vienna on June 22. The group previously agreed to curb their output by about 1.8 million barrels per day to boost oil prices and clear a supply glut.

“Any signs that the group may be heading toward an early exit from the production cut agreement would weigh on prices,” ANZ bank said in a note. Meanwhile, commercial US crude inventories rose by 5.8 million barrels in the week to May 18, beating analyst expectations for a decrease of 1.6 million barrels, the Energy Information Administration (EIA) said on Wednesday.

Elsewhere, Libya, which is an OPEC member, cut its oil production by about 120,000 barrels per day as unusually hot weather prompted power problems, an official from the National Oil Corp. said on Wednesday.

Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore, said that prices were getting some support from talk that Sinopec, Asia’s largest refiner, would increase US crude oil imports to a record high.

“Recent flow is suggesting short-term traders are looking to sell the $80 per barrel chart-toppers anticipating a possible compliance shift within the OPEC-Non Opec supply agreement,” he added in a note on Thursday.


Arab News

Ticker Price Volume
QNBK 152.00 524,644
HB 52.00 38,552
WALAA 27.80 178,956
AICC 20.28 47,030
SABIC 126.00 2,430,413
EMAAR 5.20 20,932,724
STC 87.50 340,280
(In US Dollar) Change Change(%)
Brent 74.74 -0.34 -0.45
WTI 66.22 1.15 1.77
OPEC Basket 72.48 0.61 0.85
Reports predict mixed prospects for Kuwait, other oil-producing nations

21/06/2018

Local and international economic reports have predicted positive and risky prospects for oil producing countries such as Kuwait, pointing out that at the moment things are moving forward towards impr

Arab Times

Opec sees strong oil market in H2

20/06/2018

Global oil demand is set to stay strong in the second half of 2018, an Opec technical panel forecast this week, suggesting the market could absorb extra production from the group.

The Orga

The Gulf Today

Reports predict mixed prospects for Kuwait, other oil-producing nations

20/06/2018

Local and international economic reports have predicted positive and risky prospects for oil producing countries such as Kuwait, pointing out that at the moment things are moving forward towards impr

Arab Times

Opec members to decide on raising oil production

19/06/2018

Members of the Organisation of the Petroleum Exporting Countries (Opec) will meet in Vienna this week to decide on whether to end its production freeze, a market expert has revealed.

The g

Trade Arabia

Russia and Saudi Arabia agree Opec+ format should be extended

17/06/2018

Russia and Saudi Arabia have a general consensus that the Opec+ format should be “institutionalised” and extended until 2019 and beyond for oil market monitoring and joint action in case of need, Rus

Oman Daily Observer