Brent oil extended gains toward $57 a barrel as Citigroup Inc. raised its price outlook citing strong OPEC compliance with agreed output cuts and growing demand in Asia. Futures rose 1.3 percent in London. Brent will average $55 this quarter, Citigroup said in a note, an increase of $5 from its previous forecast. The North Sea price benchmark is poised for its biggest shakeup in a decade with a new grade added to the mix from January. WTI for March delivery, which expires Tuesday, was 79 cents higher at $54.19 a barrel on the New York Mercantile Exchange. click Read More below for more of the story
Futures dropped 1.1 percent in New York after a third weekly loss. Russia, which along with Saudi Arabia is trying to garner support for lifting output limits, was said to have boosted production earlier this month to above the level envisioned by OPEC. Meanwhile, the number of rigs drilling for crude in the U.S. inched higher, signaling output may extend a record.
Saudi Arabia and Russia, among the countries with spare capacity to raise production, signaled last month they may restore output even though they hadn’t yet consulted most other producers. Oil prices have fallen more than 7 percent since the two nations made their proposal public.
Russia increased oil output to 11.1 million barrels a day during the first week of June, Interfax reported, citing a person it didn’t name. That’s above the 10.95 million-barrel level envisioned by the country’s agreement with OPEC and allies.
more at source: https://www.msn.com/en-us/finance/markets/oil-slips-on-signs-russia-boosted-crude-output-before-opec-meets/ar-AAytTjF