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Prices for Brent Crude Fall amid OPEC Production Increase Speculations

June 21, 2018 at 19:39 by Vladimir Vyun

Futures for Brent crude oil declined today amid speculations that the Organization of Petroleum Exporting Countries and its allies will increase production. West Texas Intermediate crude was little changed.

World’s biggest oil consumers, including the United States, were calling for the OPEC to bolster output to prevent shortages. Saudi Arabia and Russia were in favor of increasing production, while such countries as Iran and Venezuela, which are struggling with their supply anyway, were opposing such an idea. Iran’s Oil Minister Bijan Zanganeh voiced doubt that the OPEC will be able to reach an agreement at tomorrow’s meeting. With that said, many analysts believe that a production increase is almost guaranteed, the question is by how much.

Yesterday, the Energy Information Administrations reported that US crude oil inventories shrank by 5.9 million barrels. That was almost three times the forecast drop by 2.1 million.

Futures for delivery of WTI crude oil in August edged up a little by 0.05% to $65.74 per barrel as of 19:28 GMT on NYMEX today. At the same time, contract for Brent crude sank as much as 2.15% to $73.13 per barrel on ICE.

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