Breaking News
0

Oil steadies ahead of key OPEC meeting

CommoditiesJun 14, 2018 08:36AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A pumpjack brings oil to the surface in the Monterey Shale

By Christopher Johnson

LONDON (Reuters) - Oil prices steadied on Thursday, but still faced pressure from evidence of rising U.S. output and uncertainty over the outlook for supply before a meeting next week of the world's largest exporters.

Benchmark Brent crude oil (LCOc1) was unchanged at $76.74 a barrel by 1215 GMT, while U.S. light crude (CLc1) was 35 cents higher at $66.99.

Brent hit a high of $80 a barrel in May but has since drifted lower, indicating investors expect the market to become better supplied in the next few months as U.S. crude production rises and as key Middle East exporters and Russia pump more.

U.S. crude output has risen almost 30 percent in the last two years to a record high of 10.9 million bpd. Russia pumped 11.1 million bpd in the first two weeks of June, above Saudi Arabia, which produced slightly more than 10 million bpd.

The Organization of the Petroleum Exporting Countries and other big producers meet on June 22-23 in Vienna to discuss production and are widely expected to agree to higher output.

"A wait-and-see approach is taking hold across the energy complex as market participants buckle down ahead of next week's crunch OPEC/non-OPEC meeting," said Stephen Brennock, analyst at London brokerage PVM Oil Associates.

The surge in U.S. output has put pressure on other producers, which are losing market share.

Russian and Saudi production has been held back voluntarily since 2017, when OPEC, together with a number of other producers, began supply cuts of 1.8 million bpd to prop up prices.

But, with Brent prices up by around 180 percent from their 2016 lows and demand strong, OPEC and Russia may soon end their supply cuts.

Saudi Arabia and Russia are understood to favor higher production to steady prices and some analysts say they could decide to pump more on their own if OPEC does not agree to increase production as a bloc.

Saudi Energy Minister Khalid al-Falih said on Thursday he expected a reasonable and moderate agreement next week when OPEC and non-OPEC oil producers meet.

Falih, on a visit to Moscow to attend the World Cup, where the Russia and Saudi Arabia national soccer teams will play on Thursday, is due to meet Russian Energy Minister Alexander Novak and President Vladimir Putin before the game.

U.S. crude inventories fell by 4.1 million barrels, more than anticipated, to 432.4 million barrels, last week, the U.S. Energy Information Administration said.

Oil steadies ahead of key OPEC meeting
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email