OPEC-led Coalition Discussed Raising Production 1 Million BPD

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

According to Reuters, the discussions were triggered by complaints from US President Donald Trump that the oil price has soared too high and was being propped by artificially by OPEC, after Brent Crude hit its highest level since late 2014 at $80.50 this month. OPEC and his nation don't plan to stick to existing output cuts, he said.

Based on the data, the world's largest oil producer, Saudi Arabia, has the cheapest price among the top 10 consumers - $0.54 a litre for petrol and $0.13 a litre for diesel.

The creation of strategic petroleum reserve (SPR) is founded on several joint global studies, the DoE's Oil Industry Management Bureau said. Still, with opposition from several producers, it is not clear whether the group will reach a consensus when it meets in Vienna next month.

Still, there are some concerns surrounding political turmoil in Italy, and the potential for further instability there rattled the stock market and raised concerns over a possibly decline in European oil demand, said Flynn.

Prices of daily-use consumer products such as packaged snacks, detergents and cooking oils may increase by 4-7% after petrol and diesel prices rose to a record, companies said, anxious that the inflationary trend could adversely affect demand. The bank added that "historically, prices have declined after the announcement of OPEC production increases, however, when these occurred in a strong demand environment like today, prices were on average 8 percent higher than pre-announcement two months later". Any decision regarding boosting oil production could come as soon as the next cartel meeting on June 22.

West Texas Intermediate crude and Brent crude are now the two major benchmarks for world oil prices. The joints efforts managed to buoy the oil prices into interstellar prices.

More news: China Won't Publicly Congratulate Maduro on Venezuelan Election Fraud

The speculation of an output push by US rivals may cool oil's recent run even further.

Pressure has been on the rise since the International Energy Agency published its monthly report acknowledging that the oil market was now balanced and that commercial glut in major industrial countries fell by about 1 million barrels.

Oil prices inched down on Wednesday amid concerns that Saudi Arabia and Russian Federation will pump more crude in the second half of the year in response to falling global crude inventories and rising consumer prices. More importantly, the success of ARAMCO IPO also depends on higher oil prices and thus might push Saudi Arabia to keep oil prices elevated.

"There's some discord among the Gulf countries as to whether or not they should increase now or not", Kilduff said.

The timing of the new regulation will coincide with the effect on supply from the underinvestment during the oil price crash and the strength in demand, suggesting that the "era of "lower for longer" oil prices is dead", Energy Aspects' Sen and Yasser Elguindi wrote in a commentary in the Financial Times this week.

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