Oil Prices Diverge as Venezuelan Output Approaches Crisis Mode

Brent crude hit its lowest price in almost a month on Tuesday following after sources said the USA government had asked Saudi Arabia and other major exporters to increase oil output.

A pump jack lifts oil out of a well, during a sandstorm in Midland, Texas, U.S., April 13, 2018.

However, the dip was short-lived as prices picked up a bid after the API data showed crude inventories fell by 2 million barrels in the week to June 1 to 432.8 million. Fuel inventories also rose. Iran's crude oil output could fall 1 million bpd as a result of renewed US sanctions, according to a note from Standard Chartered.

Brent crude, the global benchmark, rose 0.3% to $75.62 a barrel on London's ICE Futures exchange.

"The continuing increase in crude oil production is weighing on the market, and quite significantly compared to this time previous year", Andrew Lipow, president of Houston-based Lipow Oil Associates. The markets were expecting a drop of 1.8 million barrels.

Around the same time, when India had expressed frustration over rising oil prices, Saudi Energy Minister Khalid al-Falih told Pradhan that supporting global economic growth was one of the Gulf nation's key goals.

Saudi Arabia and Russian Federation were already discussing raising OPEC and non-OPEC oil output by around 1 million bpd, sources familiar with the matter said on May 25.

The Organization of the Petroleum Exporting Countries and Russian Federation will meet on June 22-23 to decide how much production they will increase as global inventories have tightened while Venezuela's production has dropped more than expected.

Reuters reported on May 25 that the producers were considering a supply increase of 1 million barrels per day, with a final decision to be made at the June meeting in Vienna. Its output has been hampered by inadequate investment, mismanagement and US sanctions.

The U.S. government has unofficially asked Saudi Arabia and some other OPEC producers to raise oil output, three OPEC and industry sources said, although it has not requested a specific figure.

Oil is trading near the lowest level in nearly two months after Saudi Arabia and Russian Federation signaled in late May that they were ready to ease output curbs to fill potential supply losses in Iran and Venezuela.

The request comes after USA retail gasoline prices surged to their highest in more than three years and President Donald Trump publicly complained about OPEC policy and rising oil prices.

Related News:

  • North West and Penelope Disick celebrate birthdays

    North West and Penelope Disick celebrate birthdays

    Final yr the pair loved a Moana-themed celebration, and in 2016 the 2 women honored their large days with a mermaid-filled bash. Celebrity cousins North West and Penelope Disick were fêted at a unicorn-themed joint birthday party.
    Abortion debate: Controversy-hit Simpson challenges Creasy

    Abortion debate: Controversy-hit Simpson challenges Creasy

    Mr Corbyn made his intervention as MPs were debating repealing sections of a 150-year-old law that criminalises abortion. The ruling by the panel of judges, headed by the court's president Lady Hale, follows a hearing previous year .

    David Spade Mourns Sister-in-Law Kate Spade's Death

    Kate Spade told her daughter to "ask daddy" in a heartbreaking suicide note found in her Manhattan flat, police sources said. The couple made a decision to sell the business in 2006 to devote their time to Frances . "She and Andy, they were a team".
  • Donald Trump Denounces Rumors About Melania Trump's Absence

    Donald Trump Denounces Rumors About Melania Trump's Absence

    When reporters did press about Melania, her communications team responded on Monday: "Mrs. She is due to make her first appearance before the media in weeks on Wednesday.

    Woman discovers cancer thanks to doctor watching HGTV

    It was an effort that may have helped to save her life. "Helping her was heartwarming and emotional", Voigt said. To show her gratitude to the observant doctor, Ms McGuinness met with Dr Voigt personally to thank him.
    Investigation calls sexual assault claims against Georgia Tech coach 'concocted'

    Investigation calls sexual assault claims against Georgia Tech coach 'concocted'

    According to CBS Sports , the Title IX investigation was paid for by Georgia Tech and performed by a Louisiana-based law firm. They said a security officer witnessed the incident, but employment records indicated the officer wasn't working that night.
  • Philly woman arrested on Wildwood beach speaks out

    Philly woman arrested on Wildwood beach speaks out

    The video shows an officer punching a 20-year-old Philadelphia woman in the head during the altercation. She said her neck and back have been hurting since the incident, and she has headaches.
    McCabe says he'll plead the Fifth before senators unless he's given IMMUNITY

    McCabe says he'll plead the Fifth before senators unless he's given IMMUNITY

    Grassley has also, per CNN, invited both James Comey and Loretta Lynch to testify too. Dianne Feinstein, would discuss seeking a court order to grant McCabe immunity.

    Moto Z3 Play arrives with stylish design and Moto Mod support

    Just like Z2 Play , the Moto Z3 Play will also come with support for 16 magnetic pins at the back to connect Moto Mods . The biggest change with the larger display is the fingerprint sensor, which has now moved to the right of the phone.
  • Jeep Renegade revealed with a more mature, aggressive look

    The facelifted Jeep Renegade does look distinct compared to the previous model as it gets a host of cosmetic additions. Jeep has officially unveiled the images of the facelifted Jeep Renegade that is expected to be launched in India.
    Trump declares that Melania 'is doing really well!'

    Trump declares that Melania 'is doing really well!'

    US President Donald Trump has lashed out at media reports about Melania Trump's rare public appearances. Trump walking with aides at the White House. [White House] (and me) for New York or Virginia, to abuse.
    Nipah Virus outbreak result of tampering with nature: Nadda

    Nipah Virus outbreak result of tampering with nature: Nadda

    It was unfortunate that some people had been carrying out an adverse campaign over the Nipah situation through the social media . The main concern was to control the spread and the search would divert attention, the official said.


Most liked

AMD unveils Threadripper 2: 32 cores, 64 threads, 250W TDP
Other than the core and thread counts, AMD didn't share many more details about the second-gen Threadripper chips. For reference, the last-generation Ryzen Threadripper 1950X featured 16-cores and 32-threads.

Max Scherzer pitches immaculate inning vs. Rays
They're all Hall of Famers and will most assuredly be joined by Scherzer when his career is done. All nine were strikes, resulting in three strikeouts and an uber-rare "immaculate inning".

Liverpool interested in acquiring Stoke City's Xherdan Shaqiri
Shaqiri is now on worldwide duty with Switzerland and is due to travel to Russian Federation for the World Cup with his national team.

'Stay put' policy failed victims of Grenfell Tower blaze, says expert
The Grenfell Tower inquiry has been shown "truly shocking" footage of the fire taking hold of the building. A 72nd victim injured in the blaze died in January.

Puerto Ricans create memorial for hurricane victims, demand proper death toll count
Eight months after Maria, more than 10,000 customers are still in the dark, forcing people to take matters into their own hands. Researchers believe that the number may be much higher than their report. "It's not sticking with the number".

Google Releases Android P Beta 2
Aside from finalizing these features and APIs, Beta 2 introduces 157 new emoji. Unfortunately, Google still hasn't announced the actual name of the update.

Sonos Beam is a smart soundbar with HDMI and AirPlay 2
Google Assistant will also be introduced to the speaker in the future, but it's unclear when that will happen. It's about 60 percent smaller according to Chris Kallai, Sonos' VP of hardware Product Management.

Fact check: Trump blames Dems for border separations
Miguel Nogueras is an immigration lawyer in McAllen, Texas, who works with families affected by the policy. Administration officials are quick to note that Sessions' policy makes no mention of separating families.

Sonam Kapoor Ahuja finally finds time for her in-laws
On being trolled for her dress sense, Kareena slammed her critics by raising questions on the definition of the motherly dressing. She said that the concept of a woman surrendering to the object of her desire was expressed in a refined way through songs.

Sixers decision on Bryan Colangelo in Twitter scandal could come Wednesday
Despite vehement denials from Colangelo, the team's ownership was reportedly fuming over the incident and are embarrassed. The accounts have also been linked to his wife, Barbara Bottini.

'A Star Is Born' Trailer: Bradley Cooper, Lady Gaga Sing Together
The cast of A Star is Born also includes Andrew Silverstein (aka Andrew Dice Clay), with Dave Chappelle and Sam Elliott. Gaga was adamant Cooper not rely on prerecorded tracks and instead have all the performers sing live during filming.

Eagle-eyed doctor spots woman's cancer while watching her on TV show
This isn't the first time that an HGTV show has helped someone spot thyroid cancer. His thyroid was removed and he went through thyroid radioactive iodine therapy.

MI basketball coach John Beilein will return next season
The 65-year-old is Michigan's all-time coaching wins leader with a 248-143 record in 11 seasons at the school. But Wednesday's news means there is a good chance the 65-year-old will retire at MI .

Tetris Effect Is Coming To The PlayStation 4 In Fall 2018
As promised a couple of days ago , Sony Interactive Entertainment announced a brand new PS4 game during a pre-E3 livestream . On top of this, the developer is looking into the possibility of a releasing a demo down the line.

Are Gigi Hadid and Zayn Malik back together?
Earlier that evening, she was seen with fellow supermodel Lily Aldridge at the New York City premiere of the new film Ocean's 8 . The image also showed Zayn - who is identifiable by the chessboard tattoo on his arm - leaning over to plant a kiss on Gigi.