Oil prices fell more than 4 percent on Thursday, hitting their lowest in more than a year on worries about oversupply and the outlook for energy demand as a U.S. interest rate rise knocked stock markets. Both major oil futures contracts rallied sharply on Wednesday but are now at or close to their lowest levels for over 15 months, more than 30 percent below multi-year highs reached at the beginning of October. “Oil prices are selling-off once again as market players take their cues from a rout on global stock markets,” said Stephen Brennock, analyst at London brokerage PVM Oil. Click read more below for additional detail.
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