Oil pump jacks seen in shale oil and gas field Vaca Muerta in Patagonian province of Neuquen, Argentina, January 21, 2019. REUTERS / Agustin Marcarian / File Photo
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- OPEC + adheres to the oil production policy, avoiding the debate in September
- Fears of a recession weigh on oil prices, Wall Street
- Some Norwegian oil workers have been on strike since July 5
NEW YORK, June 30 (Reuters) – Oil prices fell about 3% on Thursday after OPEC + confirmed it would increase production in August alone as much as previously announced, despite limited global supplies, but left the market to wonder about future production.
Brent crude futures for September delivery fell $ 3.42, or 3 percent, to $ 109.03 a barrel. The August contract, which expires on Thursday, fell 1.45 dollars, or 1.3%, to set at 114.81 dollars per barrel.
West Texas Intermediate (WTI) crude futures fell $ 4.02, or 3.7 percent, to $ 105.76 a barrel.
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The OPEC + producer group, including Russia, agreed on Thursday to stick to its production strategy after two days of meetings. The Producers’ Club avoided discussing politics from September onwards. Read more
Earlier, OPEC + decided to increase production each month by 648,000 barrels per day (bpd) in July and August.
Sanctions against Russian oil following Russia’s invasion of Ukraine have contributed to soaring energy prices, fueling inflation and fears of a recession.
Oil prices fell along with Wall Street on Thursday. The S&P 500 was created for its worst in the first six months of 1970, amid fears that central banks determined to curb inflation would hamper global economic growth.
The drop in oil prices deepened as US traders built positions ahead of the three-day holiday weekend on July 4th.
“People are taking money off the table,” said Phil Flynn, an analyst at Price Futures Group in Chicago.
But further supply disruptions could limit the fall in prices amid the suspension of Libyan supplies from two eastern ports, while production in Ecuador fell due to ongoing protests. Read more
In Norway, 74 offshore oil workers on Equinor’s Gudrun (EQNR.OL) platforms Gudrun, Oseberg South and Oseberg East will go on strike on July 5, the Lederne union said on Thursday, probably stopping about 4% of Norway’s oil production. Read more
Meanwhile, Russian Deputy Prime Minister Alexander Novak said on Thursday that a possible restriction on import prices imposed on Russian oil could raise prices. Read more
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Report by Stephanie Kelly in New York; additional reports by Noah Browning in London, Jeslin Lerch in Singapore and Arati Somasehar in Houston; Edited by Lisa Shoemaker, Alistair Bell and Deepa Babington
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