• 4 minutes US-backed coup in Venezuela not so smooth
  • 7 minutes Why Trump will win the wall fight
  • 11 minutes Oil imports by countries
  • 13 minutes Maduro Asks OPEC For Help Against U.S. Sanctions
  • 9 mins Climate Change: A Summer of Storms and Smog Is Coming
  • 9 hours Itt looks like natural gas may be at its lowest price ever.
  • 20 mins Venezuela: Nicolas Maduro closes border with Brazil
  • 29 mins Teens For Climate: Swedish Student Leader Wins EU Pledge To Spend Billions On Climate
  • 8 hours Tension On The Edge: Pakistan Urges U.N. To Intervene Over Kashmir Tension With India
  • 14 hours North Korea's Kim To Travel To Vietnam By Train, Summit At Government Guesthouse
  • 18 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 9 hours students walk out of school in protest of climate change
  • 1 day Washington Eyes Crackdown On OPEC
  • 1 day Europe Adds Saudi Arabia to Dirty-Money Blacklist
  • 21 hours America’s Shale Boom Keeps Rolling Even as Wildcatters Save Cash
  • 7 hours Mineral rights owners,
Jim Hyerczyk

Jim Hyerczyk

Fundamental and technical analyst with 30 years experience.

More Info

Rally Unwinds As Russia, Saudis Aim To Increase Oil Output

Rigs

U.S. West Texas Intermediate crude and internationally-favored Brent crude oil are trading sharply lower on Friday, putting the market in a position to finish the week lower for the first time since the week-ending April 27. The market is being pressured by the possibility of increased production from OPEC for the first time since 2016. This news is offsetting potentially bullish supply disruptions from both Venezuela and Iran.

Also worrying bullish crude oil traders was a sustained rise in gasoline inventories just ahead of the Memorial Day holiday in the United States, which typically marks the start of the summer driving season.

Russia Factor

Crude oil sellers are reacting to the news that Russia hinted it may gradually increase output after withholding supplies since 2017 together with producer cartel OPEC.

Russia has been floating the idea of ending the production for several weeks, with energy minister Alexander Novak saying on Thursday that restrictions on oil production could be eased “softly” if OPEC and non-OPEC countries see the oil market balancing in June.

Surprise Build in U.S. Inventories

An unexpected build in U.S. crude oil inventories also weighed on prices, driving the spread between Brent crude and U.S. West Texas Intermediate (WTI) close to its widest in three years.

On Wednesday, the U.S. Energy Information Administration (EIA) said commercial crude inventories rose by 5.8 million barrels in the week…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin



Oilprice - The No. 1 Source for Oil & Energy News