🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Crude Oil Prices Settle Higher as OPEC Reportedly Mulls Modest Output Hike

Published 06/18/2018, 02:42 PM
© Reuters.

Investing.com – WTI crude oil prices settled higher Monday as traders cheered a report suggesting the Organization of the Petroleum Exporting Countries was considering an output hike well below levels many had initially feared.

On the New York Mercantile Exchange crude futures for July delivery rose 1.30% to settle at $65.69 a barrel, while on London's Intercontinental Exchange, Brent rose 2.2% to trade at $75.08 a barrel.

Members of the Organization of Petroleum Exporting Countries (OPEC) are discussing an agreement that would raise oil output by 300,000 to 600,000 barrels a day (bpd) over the next few months, Bloomberg reported, citing people briefed on the talks.

That is well below the 1.5 million bpd uptick in production touted a few weeks ago, reducing investor fears of a significant slowdown in rebalancing in oil markets, which could potentially hurt oil prices.

The discussions come as OPEC attempts to placate opposing demands from its members and Russia. Russia favours a large output hike, while other OPEC members including Iraq and Iran believe production should be maintained as oil prices still need to be supported.

OPEC and its allies' 1.8 million (bpd) production-cut agreement agreed in November 2016 has played a key role in ridding the market of excess crude supplies. The OPEC-led deal is expected to come under review at the oil-cartel's meeting later this week.

Some analysts said they expect the focus of the OPEC meeting will be on replacing the drop in Venezuelan crude output as the country's energy sector has come under heavy pressure amid U.S. sanctions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.