A number of participants in the transaction to limit oil production of OPEC and non-OPEC should increase production in order to avoid overheating of the oil market, said on Thursday the head of "Gazprom oil" Alexander Dyukov.
OPEC and non-OPEC producers, led by Saudi Arabia and Russian Federation, agreed to cut production by 1.8 million barrels per day (MMBPD) until the end of 2018 to lower oil stockpiles and lift oil prices. But commercial US crude inventories rose C-STK-T-EIA by 5.8 million barrels in the week to May 18, beating analyst expectations for a drop of 1.6 million barrels, the Energy Information Administration (EIA) said on Wednesday.
Trump in April complained that OPEC was artificially pushing the price of oil higher.
But the sources said that the quick decline in global oil inventories and worries about the impact on oil supplies after the USA decision to withdraw from the worldwide nuclear deal with Iran, as well as Venezuela's collapsing oil output, were behind the change in OPEC's thinking.
Traders also drew attention to the data of the American Petroleum Institute (API) on reserves in the US. US refineries produced about 10 million barrels of gasoline a day last week, down by about 500,000 barrels compared to the prior week.
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July WTI crude futures settled 1.2% to $71.36/bbl while July Brent slid 1.5% to $78.39/bbl, after USA crude inventories rose 5.8M barrels last week while gasoline stocks gained 1.9M barrels.
United States crude added 24 to $72.48 per barrel and Brent rose 17 cents to $79.33 on Monday (May 22).
The ministers, along with their counterpart from the United Arab Emirates, discussed an output increase of about 1 million barrels per day (bpd), sources told Reuters. The collapse of Venezuela's economy and increased US sanctions is likely to hamper already depressed output from the OPEC member.
In Canadian dollar terms, the price of WTI is now where it was, on average, during what Porter called the "go-go years for oil prices", between 2007 and 2014. Because most of the participating nations are already producing close to their maximum, additional supply would have to come from a relatively short list of nations, namely, Saudi Arabia, Russia, the UAE and Kuwait.
Crude imports rose 558,000 b/d last week to 8.159 million b/d, while exports dropped 818,000 b/d to 1.748 million b/d.