• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 5 days The United States produced more crude oil than any nation, at any time.
  • 10 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 6 days How Far Have We Really Gotten With Alternative Energy
  • 11 days e-truck insanity
  • 9 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 9 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 11 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
Rising Middle East Risk Sparks Fear of $100 Oil

Rising Middle East Risk Sparks Fear of $100 Oil

In case of further escalation,…

Is $100 Oil Within Reach?

Is $100 Oil Within Reach?

We have a situation where…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Continues To Slide As OPEC Stays Silent

Shale Permian

Oil prices fell for a third day in a row early on Thursday as uncertainty coming from the OPEC+ deadlock and fears of COVID variants spreading fast weighed on the market.

As of 10:44 a.m. EDT on Thursday, before the weekly EIA inventory report, WTI Crude was down 0.69 percent at $71.70 and Brent Crude traded down 0.39 percent at $73.11. Both benchmarks have now lost $3-4 per barrel since Monday close, when they hit multi-year highs.

The market largely shrugged off a seventh straight weekly inventory draw reported by the American Petroleum Institute (API) on Wednesday. API estimates that U.S. crude oil inventories fell by 7.983 million barrels for the week ending July 2.

Participants focused on the continued discord between the United Arab Emirates (UAE) and Saudi Arabia, which threatens to unravel the entire production pact that has been in place since April 2020.

“A prolonged period without a deal could drive an increased amount of noncompliance, and the market worries countries like the UAE may adopt a new strategy of selling as much crude as possible,” Saxo Bank strategists said today.

The odds of a new pump-at-will price war may have risen in recent days, but analysts continue to believe this is not the base-case scenario for the outcome of the OPEC+ spat.

“Fundamentally, it is difficult to justify Brent trading above US$75/bbl for a sustained period and we believe OPEC+ will come to a compromise to gradually increase output,” Warren Patterson, Head of Commodities Strategy at ING, said in a note on Thursday.

The OPEC uncertainty combined with resurgence in COVID cases in Asia to weigh down on the market on Thursday. Tokyo declared a state of emergency that will include the period of the Olympics, and officials are now considering whether to allow spectators at all. In Southeast Asia, Indonesia is registering record COVID cases, while Thailand’s plan to fully re-open to foreign tourists in three months were thrown in disarray by surging cases.

In addition, as Saxo Bank notes, oil is falling this week in “a summer holiday market where reduced liquidity drives increased volatility, especially now given the current disarray within OPEC+.”


By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News