OPEC, global oil production is at the center of attention

Oil prices on Thursday fell by a record raw material in the US, raising concerns about the return of global oversupply, prompting OPEC to say that the production of curbs may again be necessary to prevent overpowers.

Brent crude oil futures were $ 71.93 per barrel at 00301 GMT, a decline of 14 cents.

West Texas Intermediate (WTI) futures stocks amounted to $ 61.68 a barrel, practically since the last settlement.

Benjamin Lu, Phillip Futures in Singapore, said that overall: "Oil prices continue to show … bearish effects in connection with growing global stock market … (and like) rising output levels threatens to disrupt supply fundamentals in the fourth quarter of the year 2018. "

A producer group around the Organization of Petroleum Exporting Countries (OPEC), as well as Russia, has decided to withdraw in June to release exit restrictions from 2017, after pressure from US President Donald Trump to lower oil prices and offset supply losses from Iran.

With Iraqi sanctions now, oil is still available at a sufficient level, OPEC's production cuts can not be ruled out next year, two OPEC sources said on Wednesday.

"OPEC and Russia can use cuts to support $ 70 a barrel," said Ole Hansen, Saxo Bank's Chief Commodity Strategist.

"The introduction of US sanctions against Iran during this week has failed to lift the market, given the announcement that eight countries, including the world's three largest importers, will get an exception to buy Iranian raw material for up to six months," Hansen said.

Source link