Oil output could return to October 2016 level, says Russia's Novak

Oil prices fall as supply from top three producers set to rise

Fuel prices might dip after 14 consecutive days of price hike

That puts the U.S. ahead of top exporter Saudi Arabia, and only Russian Federation pumps out more, at around 11 million bpd.

The drop was accompanied by relatively heavy volume suggesting some capitulation from the extreme long crude speculative positioning.

According to TrackInsight data, Energy Stock ETFs fell back 1.9% on Thursday 25 May, while the largest ETF tracking energy stocks, the €16.5 billion Energy Select Sector SPDR Fund, fell some 3% on Friday following the news reports.

Saudi Arabia and Russia's proposal to revive production signals supplies are now tight, and isn't a bearish development, Goldman analysts including Damien Courvalin wrote in a report.

The problem with set-piece meetings like the OPEC gathering on June 22 in Vienna is that they focus tremendously on what is said, rather than what is actually done. The us benchmark WTI fell by 1.83% on Monday and almost 9% compared to the peaks, shown a week ago, before 66,64 dollars per barrel. Both of the powerhouse countries announced their intent to increase their oil production as the United States continues with their rapid and increasing production rate.

The US West Texas Intermediate (WTI) crude futures ended at $66.78 per barrel, down $1.1 or 1.6 percent.

US crude's discount to Brent rose to as much as $9.31, with Brent supported as investors anxious that USA sanctions could be cutting crude supplies from Iran.

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Compared to petrol , the state-owned Oil Companies made a decision to increase diesel prices at a much lower rate on Tuesday. Critics of the government say fuel prices were kept in check to woo voters in the southern Indian state.

"I think the output reduction will not be as significant as many expect", RIA news agency quoted Novak as saying when asked if he agreed with an estimate that the sanctions could remove as much as 800,000 barrels a day from the market. "We don't want these prices to fall too far, '" said Phil Flynn, analyst at Price Futures Group in Chicago. This is primarily due to crude oil's surge to a 3½-year high on supply worries related to Venezuela and Iran.

India's Reliance Industries Ltd, owner of the world's biggest refining complex, plans to halt oil imports from Iran, two sources familiar with the matter said.

"The pace of the recent rise in oil prices has sparked a debate among investors on whether this poses downside risks to global growth", Chetan Ahya, Chief Economist at US bank Morgan Stanley wrote over the weekend in a note.

The group has to decide unanimously whether to adjust output, said Suhail Al Mazrouei, energy minister of the United Arab Emirates and holder of OPEC's rotating presidency.

Plunging production from Venezuela has caused output to fall by about 2.7 million barrels a day Russia's energy minister told Reuters, almost 1 million barrels a day more than the OPEC-agreed quotas.

"They want stability in the market", said Slaughter. In addition, US oil production is ramping up quite steadily.

USA energy companies added 15 rigs looking for new oil in the week ending May 25, bringing the rig count to 859, its highest since 2015, in a strong indication that American crude production will continue to rise.

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