Crude oil prices fluctuate as OPEC meeting approaches

2018/6/7 10:41:08

The U.S. also requested some OPEC members to increase their daily output. Just how receptive OPEC members will be to this request is an open question.


By Sharon Harris for Born2Invest, June 6, 2018


Prices of crude oil have been on the move these past few days as the world anticipates for the meeting of members of the Organization of Petroleum Exporting Countries (OPEC) scheduled on June 22.

In an article from The Economic Times last June 1, oil prices dropped on May 28 and reached $75 per barrel, its lowest in three weeks. The news came following the discussion of OPEC and non-OPEC allies such as Russia about a possible adjustment in their agreement of raising the production by 1 million barrels per day and about the tariffs imposed by the U.S. and their effect on the production of Iran.

After the said decline, Brent crude’s price bounced back when it traded at approximately $77. But despite such improvement, investors kept their guard up while waiting for the meeting. Then, Brent crude futures experienced a decrease, losing 31 cents and reaching $77.41 per barrel. On the other hand, the price of U.S. West Texas Intermediate crude also lost 39 cents, arriving at $67.82 per barrel.

Bharne Schieldrop, the chief commodities analyst of SEB, stated, “If this is a real correction, then the price should get down to the low $70s or even the mid-$60s. The market needs to be cautious ahead of the OPEC meeting.”


Stabilizing oil price


On June 5, Platt’s reported that crude oil futures have maintained their levels while trading in Asia last Wednesday, with the August ICE Brent Crude futures staying at Tuesday’s levels of $75.40 per barrel. However, the July NYMEX light sweet crude contract received a boost worth 15 cents per barrel and settled at $65.68 per barrel.





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