Investing.com - Oil prices edged lower on Friday morning in Asia as Russia hinted it may increase output.
Crude Oil WTI Futuresfor July delivery were trading at $70.63 a barrel at 11:20PM ET (03:20 GMT), down 0.11%. Brent crude futures for July delivery, traded in London, were down 0.15% at $78.67 per barrel.
Shanghai Crude Oil WTI Futures for September delivery were down 0.50% at 480.60 yuan ($75.25) 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).
But Russia, in particular, has shown eagerness to end the production cuts, with energy minister Alexander Novak saying on Thursday that restrictions on oil production could be eased “softly” if OPEC and non-OPEC countries see the oil market balancing in June.
OPEC and some non-OPEC major oil producers are scheduled to meet in Vienna on June 22.
Any signs that the group may be heading towards an early exit from the production cut agreement would weigh on prices.
While Russia and OPEC benefit from higher oil prices, which have risen by almost 20% since the end of last year, their voluntary production cuts have allowed other producers to ramp up output and gain market share.
U.S. crude oil production has risen by more than a quarter in the last two years, to 10.73 million bpd. Only Russia produces more, at around 11 million bpd.
Geopolitical risks remain the largest factor keeping oil markets on edge.
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.
In the face of these worries, OPEC and Russia could step up production as soon as June to make up for the reduced supply.