WTI Crude Oil Violates Upward Trendline - OPEC Meeting In Focus

A fracking operation in Midland Texas. The Permian Basin recently passed 3.1 million barrels a day of output

A fracking operation in Midland Texas. The Permian Basin recently passed 3.1 million barrels a day of output

Benchmark Brent crude oil lost $1.26 a barrel, or 1.6 per cent, to a low of $75.53 before recovering to $75.89, down 90 cents, by 1125 GMT. U.S. light crude was up five USA cents at $65.86 a barrel.

Last week, the week after Memorial Day, the USA crude contract lost about 3 percent after a decline of almost 5 percent the previous week.

It also follows Washington's decision to reimpose sanctions on Iran's crude exports, which could disrupt global oil supply. "Which one is going to win is the issue", said Tony Nunan, risk manager at Mitsubishi.

The U.S. government has asked Saudi Arabia and some other OPEC producers to increase oil production by about 1 million barrels per day (bpd), Bloomberg reported on Tuesday, citing people familiar with the matter.

Also, the U.S. shale oil book is in full force, as noted by Baker Hughes in its weekly oil rig numbers.

OPEC is in the midst of a supply-cutting deal with Russian Federation and other non-members.

The Koch Brothers Are Taking On Donald Trump Over Tariffs
He welcomed the EU's decision to take the matter to the World Trade Organisation (WTO), but said it could be hard for it to act. The same was true of Mexico and Canada, with the latter's leader lashing out at Trump in recent days over the matter.

That confirms the hints by Saudi Arabia and Russian Federation that they were considering raising that amount anyway.

OPEC ministers from Saudi Arabia, the United Arab Emirates, Kuwait and Algeria along with their counterpart from non-OPEC Oman gathered in Kuwait on Saturday for an unofficial meeting of a joint ministerial committee that monitors compliance with the agreement.

The U.S. government has unofficially asked Saudi Arabia and some other OPEC producers to raise oil output, three OPEC and industry sources said, although it has not requested a specific figure. With oil inventories in developed countries back to their five-year average and fuel prices approaching painful levels for consumers, Saudi Arabia and Russian Federation have started talking about boosting output again, prompting Brent to slide back toward $75.

Likewise, the oil for delivery in June traded higher by Rs 32 or 0.74 per cent to Rs 4,383 per barrel in 1,043 lots. These fears from the end of May are the main deterrent for the growth of oil prices.

A meeting in Kuwait City over the weekend involving Gulf oil ministers failed to yield any clues on production strategy ahead the June 22 meeting in Vienna.

He asked: "Why would they otherwise keep cutting their net length?"

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