Published: Fri, May 25, 2018
Finance | By Loren Pratt

Oil extends slide as Russian Federation talks of easing OPEC supply curbs

Oil extends slide as Russian Federation talks of easing OPEC supply curbs

In addition, market participants fear that the Organization of countries-exporters of oil (OPEC) can in June to increase production because of the risks associated with Venezuela and Iran.

West Texas Intermediate for July delivery slid 70 cents to $71.14/bbl at 11:05 a.m. on the New York Mercantile Exchange.

Amid worries over supply from OPEC majors Venezuela and Iran, the global benchmark Brent futures were down 15 cents, or 0.19 per cent, at $79.65 per barrel. US President Donald Trump directed his ire against OPEC last month, saying in a tweet that "oil prices are artificially Very High!"

For the last two years, oil prices have slowly recovered, raising from $40 to $80 a barrel.

The government, however, is still exploring its options and has asked for the public's understanding of the fact that rising oil prices are something the government can not control.

Domestic production edged up to 10.725 million barrels per day from 10.723 million bpd in the prior week, EIA said. The average middle-class household saw annual tax-cut savings of around $930, and every $1 rise in gasoline prices will eat up about half of that, or $500, according to analysts at Height Securities LLC.

Crude imports were up by 558,000 Bbls and refiners produced less distillate fuel, which includes diesel and heating oil.

"Higher prices have begun to impact forward demand expectations and OPEC and Russian Federation, being willing and able to increase production, may have been looking for a way out of the deal which would not upset the market too much", he said.

"The reality of the world price of crude oil is that we can produce as much as we want here, but as long as it's a globally traded commodity, we are going to feel it here", said Kevin Book, managing director at the research and analysis firm Clearview Energy Partners LLC in Washington.

Analysts polled by S&P Global Platts had forecast a 1.7 million-barrel drop in crude oil stockpiles and a 620,000 barrel decline in gasoline stockpiles.

Oil prices fell on Thursday on expectations that OPEC members will step up production in the face of worries over supply from both Venezuela and Iran.

Swiss investment bank UBS reportedly warns there could be an oil price spike to $100 that triggers a USA recession.

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