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Crude Oil Drops As Saudi Arabia & Russia May Increase Production

June 1, 2018 at 23:19 by Vladimir Vyun

Crude oil fell today on concerns that the Organization of Petroleum Exporting Countries and its allies may increase production. Specialists speculated that Russia and Saudi Arabia, the top producers responsible for production cut that bolster oil prices, may increase their output. Saudi officials signaled that they just want to compensate for supply loss from Venezuela and, potentially, from Iran.

On top of that, Baker Hughes reported that the number of US oil rigs increased by 2 this week. Increasing supply from the United States was for a long time weighing on oil prices. With that said, the Energy Information Administration reported yesterday that US oil inventories declined by 3.6 million last week — ten times the forecast drop.

July futures for WTI crude oil dropped as much as 1.98% to $65.71 per barrel on NYMEX today. August contract for Brent crude declined 0.99% to $76.79 per barrel on ICE.

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