WTI falls below $61.00 on potential OPEC boost
West Texas Intermediate (WTI), the U.S. crude benchmark, traded around $60.75 during Asian trading on Friday. WTI prices were lower on concerns that global supply could outpace demand growth.
The Organization of Petroleum Exporting Countries and its allies (OPEC) plan to boost oil production to regain market share, which could limit the rise in WTI prices. Since April, OPEC's oil production has increased more than previously expected, and its output in May may increase by 411000 barrels per day. OPEC leaders are also considering a similar increase in July and could bring up to 2.2 million bpd to the market by November.
According to the US Energy Information Administration (EIA) weekly report, US crude oil inventories increased by 1.328 million barrels in the week ending May 16, compared with an increase of 3.454 million barrels in the previous week. Market consensus estimates that inventories will fall by 1.85 million barrels.
On Tuesday, the United States obtained new intelligence indicating that Israel is preparing to strike Iran's nuclear facilities, even as US President Donald Trump has been seeking a diplomatic deal with Tehran. It was not immediately clear whether Israeli leaders had made a final decision to carry out the strike, CNN said, citing unnamed officials.
An Israeli attack would impede any progress in these negotiations and increase tensions in the Middle East, which provides about 1/3 of the world's oil. Traders will be keeping a close eye on the next round of Iran-US talks due in Rome on Friday. Any signs of progress in the nuclear talks could weigh on WTI prices.
The Organization of Petroleum Exporting Countries and its allies (OPEC) plan to boost oil production to regain market share, which could limit the rise in WTI prices. Since April, OPEC's oil production has increased more than previously expected, and its output in May may increase by 411000 barrels per day. OPEC leaders are also considering a similar increase in July and could bring up to 2.2 million bpd to the market by November.
According to the US Energy Information Administration (EIA) weekly report, US crude oil inventories increased by 1.328 million barrels in the week ending May 16, compared with an increase of 3.454 million barrels in the previous week. Market consensus estimates that inventories will fall by 1.85 million barrels.
On Tuesday, the United States obtained new intelligence indicating that Israel is preparing to strike Iran's nuclear facilities, even as US President Donald Trump has been seeking a diplomatic deal with Tehran. It was not immediately clear whether Israeli leaders had made a final decision to carry out the strike, CNN said, citing unnamed officials.
An Israeli attack would impede any progress in these negotiations and increase tensions in the Middle East, which provides about 1/3 of the world's oil. Traders will be keeping a close eye on the next round of Iran-US talks due in Rome on Friday. Any signs of progress in the nuclear talks could weigh on WTI prices.
