Oil prices little changed on prolonged Opec cuts and rising US supply

Brent crude oil futures ended the day’s session little changed at US$72.18 per barrel, up 12 US cents, or 0.2%. US West Texas Intermediate crude futures ended 31 US cents or 0.5% lower at US$63.60 per barrel.

Oil Source: Bloomberg

Oil futures ended mixed on Wednesday following news of rising United States (US) crude inventories and record production as well as talks of an extension to cut supply from the Organization of the Petroleum Exporting Countries (Opec).

Brent crude oil futures ended the day’s session little changed at US$72.18 per barrel, up 12 US cents, or 0.2%. US West Texas Intermediate crude futures ended 31 US cents or 0.5% lower at US$63.60 per barrel.

Last week, crude output in the US rose to a record high of 12.3 million barrels per day.

According to the International Energy Agency (IEA), the biggest new source of oil supply comes from the US, as total oil supplies from the country is expected to grow by 1.6 million barrels per day for this year.

The US has already increased in its crude oil production by more than two million barrels per day since early last year, pumping up a record of more than 12 million barrels per day at the start of this year.

Meanwhile, Brent reversed from its dip after Oman energy minister Mohammed bin Hamad al-Rumhy said that Opec was intending to extend its supply cuts at its June meeting.

So far, crude prices have risen by over 30% this year, supported by the Opec supply cuts.

Elsewhere, the political issues in Venezuela threatening oil exports and US’ tightened sanctions on Iran have added activity to the market.


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