Oil is getting whacked after report says OPEC might boost production

Saudi Arabia's Oil Minister Khalid al Falih talks to journalists at the beginning of an OPEC meeting in Vienna Austria

Only Russia produces more, at around 11 million bpd.

"We pride ourselves as friends of the United States", SG Barkindo told a panel with the Saudi and Russian energy ministers in St. Petersburg at Russia's main economic forum. Brent, the global benchmark, fell $2.68, or 3.4%, to $76.11 a barrel, on ICE Futures Europe.

The measures are likely to see producers with spare capacity raise output by as much as 1m b/d - or roughly 1 per cent of global oil demand - though the number could be lower depending on how they calculate production targets.

Oil fell below $70 a barrel in NY for the first time in two weeks as Saudi Arabia said it expects OPEC and its partners to increase supplies later this year, easing some of the restraint they've shown since early 2017.

Oil prices have risen to $80 per barrel, the levels unseen since late 2014. But now, they are losing market shares.

The joint production freeze was put in place to arrest a plunge in premium crude prices to below $30 a barrel in early 2016, and analysts said it largely succeeded in stabilizing prices in the $40 to $50 range.

Saudi Arabia has indicated that it could raise its oil output to offset any potential supply deficit.

"The moment is coming when we should consider assessing ways to exit the deal very seriously and gradually ease quotas on output cuts", Novak said in televised comments.

US crude oil and gasoline inventories showed a surprise weekly rise on Wednesday, against the market expectation of a decrease, triggering a decline in crude prices.

The matter is particularly sensitive because Russian Federation and the Saudis are proposing raising production to make up for losses from other members, notably a worsening slump in Venezuelan supply and a potential drop in Iran as renewed United States sanctions kick in.

FILE PHOTO: People walk past the logo of the Organization of the Petroleum Exporting Countries (OPEC) in front of its headquarters in Vienna, Austria September 21, 2017. "However, there is only a marginal downward revision, as the growth is expected to be supported by twin engines of consumption and gradual recovery in capex cycle in FY19", a report by Yes Bank said. "Some 10 percent is probably the maximum level", he said when asked if he agreed with an estimate that the sanctions could remove as much as 800,000 barrels a day from the market.

The plans to now lift production again come amid worries that Iran's exports will decline after the US's decision to pull out of the nuclear deal with Tehran and as output has collapsed in Venezuela (last week's elections will do nothing to reverse that trend in Venezuela). The U.S. government estimates the cushion at just 1.34 million barrels a day next year, below the 1.4 million reached in 2008 when oil prices surged to almost $150 a barrel.

Related News:

Most liked

Samsung Galaxy Note 9 Release Date, Specs and Price
The phone is still under testing, so it will be better not to expect a lot at the moment, just by looking at the benchmark scores. However, the company is yet to shed any light on whether or when the phone will be launched globally.

'We got you' - Weinstein accusers relieved, elated at rape charges
Federal prosecutors in New York City are also investigating sex crimes involving Weinstein, The Wall Street Journal reported . We were young women who were assaulted by Weinstein and later terrorized by his vast network of complicity.

Far Cry 5's Hours of Darkness DLC lands on June 5
You can now get Hours of Darkness alone for $12 and it will be free for you if you have a $30 Season Pass or $90 Gold Edition. All of the Vietnam assets will be available in the arcade mode for DLC owners and non-owners alike on May 24.

Police Probe Loris Karius Death Threats After Champions League Misery
While Liverpool looked strong in the first 30 minutes, a shoulder injury to star man Mohamed Salah turned the course of the game. Real Madrid manager Zinedine Zidane immediately shrugged off the speculation and said: "We do not think about that".

Warriors Storm Back At Home To Force Game 7
They were in a valley of despair, down 17 points, and fought way up the hill to the sunshine and blue sky and refreshing breeze. The result was a dramatic turnaround and a 115-86 Golden State win, tying the Western Conference Finals at 3-3.

Travis Scott Honors Texas Shooting Survivors at Rockets Game
The team will play a video remembering the deceased, and members of the school choir will sing the national anthem. It was a special night on the Alvin High School football field Friday for a lot of reasons.

Federal Bureau of Investigation to America: Reboot Your Routers, Right Now
People should also consider disabling remote-management settings, changing passwords and upgrading to the latest firmware. It's not yet known how the VPNFilter malware infiltrated the routers.

Chris Froome set to win Giro d'Italia after retaining leader's jersey
Pinot, who was in third overall, looked on track for his first Giro podium finish, before he cracked with 41.1 kilometres to go. It was a monumental effort which propelled him from three minutes and 22 seconds off the lead to the frontrunner by 40 seconds.

Drake actually sent Pusha T an $100000 invoice for reviving his career
Drake has released a new diss track online called " Duppy Freestyle ". " It was written like Nas but it came from Quentin ". Drake tagged Pusha on the post and captioned the image, "You're welcome".

Israeli forces injure over 100 protesters in Gaza
At least 115 Palestinians have been killed and thousands hurt by army gunfire in the protests, drawing foreign censure. Israel says its actions are necessary to defend the border and stop mass incursions into its territory.

Musk suggest big oil fuels critical coverage of Tesla
In addition, Musk blamed the media for "being under constant pressure to get max clicks & earn advertising dollars or get fired". Because no one believes you any more. "You lost your credibility a long time ago", Musk responded in a tweet.

No winning ticket for Friday night’s $60M Lotto Max jackpot
That is combined with about $46 million Lotto Max winnings and that makes more than $100 million up for grabs across the country. I don't know", Veronica, a lottery fan, told CTV Edmonton when asked on Thursday what she would do with a sum of prize money.

Mumbai Police tries to take action against Hrithik Roshan, spares Salman Khan
However, this tweet has drawn a lot of flak from Twitter for shooting a selfie video while cycling and wasn't wearing a helmet. Even we feel that the actor should have known better than riding without a helmet on the congested streets of Mumbai.

Houston Rockets vs. Golden State Warriors - 5/28/18 NBA Pick, Odds, and Prediction
Paul and Co. have been working all season for this moment, only to now see it possibly go up in smoke. I hate to see Kevin Love last night, Kyrie (Irving). "We want to take advantage of it".

Zidane understands Bale frustration after Real Madrid exit hint
Zinedine Zidane, we should point out, knows a thing or two about winning a Champions League final. . It's just an awesome impact and an fantastic goal but, like I say, it's what he's capable of".