Oil prices nosedive due to Saudi Arabia, Russia glut

Due to the expected output increase from Saudi Arabia and Russia, oil prices went down on Wednesday morning.

Crude Oil WTI Futures for July delivery were trading at $66.46 a barrel at 11:00PM ET (03:00 GMT), down 0.40%. Brent crude futures for August delivery, traded in London, were down 0.65% at $75 per barrel.

Shanghai Crude Oil WTI Futures for September delivery were down 0.54% at 460.20 yuan ($71.59) per barrel.

Saudi Arabia, de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), as well as top producer Russia have discussed raising oil production in the second half of the year by some 1 million barrels per day (bpd) to make up for potential supply shortfalls from Venezuela and Iran.

U.S. sanctions against Iran, which produces 4% of global oil supplies, will likely cause shortages later this year when trade restrictions take effect. Production in Venezuela has also plunged to its lowest level in decades due to its ongoing economic crisis.

OPEC is due to meet in Vienna on June 22 to come up with a plan to counter the shortfalls. This could mean an early exit from the agreement to curb oil production, which OPEC as well as a group of non-OPEC producers led by Russia started in 2017 to boost oil prices and clear a supply glut.

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