Investing.com – WTI crude oil prices settled lower Thursday as major oil producers neared a deal to hike oil production by about one million barrels per day to avert a possible supply shortage and stabilise prices.
On the New York Mercantile Exchange crude futures for July delivery fell 0.26% to settle at $65.54 a barrel, while on London's Intercontinental Exchange, Brent fell 2.22% to trade at $72.08 a barrel.
Saudi Arabian Energy Minister Khalid al-Falih reportedly said OPEC and non-OPEC members were close to hashing out a deal to lift oil production, and suggested an output hike of about 1 million barrels was needed to stabilise prices.
The production-cut accord – initially agreed in November 2016 – had achieved its goal of rebalancing the oil market, restoring global inventories to the five-year average, al-Falih said.
The oil-cartel's attempts to reach a consensus on an output hike has been plagued by other OPEC members, who have appeared unwilling to compromise.
Iran had been one of the most vocal OPEC members against an uptick in production, insisting oil prices still needed to be supported, but has since warmed up to the idea of a modest boost in output.
Non-OPEC Russia, meanwhile, has taken a more hawkish stance on output hikes, calling for a 1.5 million barrel a day increase in production amid fears the market could overheat as demand picks up.
OPEC is expected to announce its decision on Friday.
OPEC has also come under fire – for the sharp rise in oil prices – from U.S. President Donald Trump, claiming the oil-cartel was "artificially" keeping oil prices elevated.
Some analysts have suggested OPEC would strive to reach a 'goldilocks' output hike, neither too high – which would irk Iran – nor too low, which would raise the risk of higher oil prices negatively impacting oil demand.
"Saudi energy minister Khalid al-Falih hinted that looking at five-year average inventory levels is not a good measure of the health of global markets," a team of analysts at Energy Aspect said in a research note.
"If true, then a 1 million barrels a day increase between now and the end of the year is not warranted...half of that figure would be a good compromise."