Forex Marketz Daily Forex News – Fully Markets Update
Crude oil prices were down this morning during Asian trade hours. Traders are concerned that OPEC and non-members led by Russia might increase production by June. OPEC is concerned over market losses with Venezuela and Iran.
As o 1 am GMT, the international benchmark Brent crude futures were down from their last close. They lost 15 cents, or 0.19 percent, to trade at $79.65 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were also lower. They lost 10 cents to trade at $71.74 a barrel.
Crude Oil traders eye OPEC Supply Headlines
News surfaced that the Organization of Petroleum Exporting Countries (OPEC), along with non-members led by Russia, could decide to increase oil output. This move would be to counter possible losses in supply from Iran. There are also big problems with Venezuela as Washington could impose sanctions. Especially with the recent rally in oil prices, which has concerned the United States.
Supply losses, which are now possible, in Iran and Venezuela would follow new U.S. sanctions. This supported Brent and WTI futures to multiyear highs. Brent was, just last week, above $80 level for the first time since November 2014.
OPEC and non-OPEC major producers will meet in Vienna on June 22. The cartel with non-members, last year, agreed to reduce output by about 1.8 million barrels per day. This was to rebalance the market, support prices and reduce a global glut.
Also in the headlines, there was a shock rise in U.S. weekly oil inventory. This put a cap on a rally with oil prices.
Commercial U.S. inventories were up according to the Energy Information Administration (EIA). With data, released overnight, inventory rose by 5.8 million barrels for the week ending May 18. This was above market expectations for a loss of 1.6 million barrels.
