Oil prices were treading on the bearish territory at the start of the week. The United States recent oil production managed to drag the prices down. The massive pressure from the U.S. output expectations continues to strike fear into its investors.
Furthermore, the local oil prices continue to suffer from OPEC impending actions. According to the organization, they are looking to increase their supply as an answer to the recent US actions for not pulling their production lower.
U.S. Oil, Brent Prices
Brent and U.S. light crude enter the week with disappointing and dipping figures. The benchmark for Brent Crude oil saw a 1.6% decline as it enters the Monday market. It shed a total of $1.26 a barrel, hitting a low of $75.53, before easing to the $75.69 figures.
On the other hand, the U.S. light crude was also trading lower to begin with this week. The commodity is down a total of 40 cents, finishing at 65.41 a barrel. It managed to extend its losing streak today after shedding as much as 3% last week.
The production figures continue to exert immense pressure on the prices. The oil production is feared to hit another milestone just like March’s report. The crude production that month managed to hit a total of 10.47 million barrels per day, a new monthly record.
Furthermore, the United States drillers reported an addition of 2 more oil rigs that are coming this week. The total of rigs is expected to hit the 861 mark, the highest number the country had seen since March of 2015. This is also the eight time that driller added a new rig over the past nine weeks.
OPEC Meetings that May Affect Oil Prices
OPEC also announced that they are looking to continue their compliance after their meeting. Major oil producers also looked to continue with their cooperation to balance the global supply. The meeting was conducted last Saturday with attendees such as OPEC ministers from Saudi Arabia, UAE, Kuwait, and Algeria, gracing the event.
The next OPEC meeting is expected to be concluded this coming June 22. The countries are looking to set another oil policy amidst debacles. The meeting is expected to raise the output to balance out the market over Iranian and Venezuelan supply worries.
A huge takeaway from the non-OPEC countries are Rosneft’s monstrous capabilities. It is Russia’s largest oil producer and is expected to restore 70,000 bdp in just two days if the global production limit is changed.
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