Oil prices fell against backdrop of rising inventories in U.S.

By Azernews

By Sara Israfilbayova

Oil prices fell on June 13 against the backdrop of rising inventories in the U.S. and the forecast about the increase quotas for oil production by the OPEC cartel.

Benchmark Brent crude was down 30 cents at $75.58 a barrel, U.S. light crude West Texas Intermediate (WTI) was 20 cents lower at $66.16, Reuters reported.

Investors react to the data of the American Petroleum Institute (API) that the reserves of this raw material in the U.S. declined less than last week, compared to expectations - by 730,000 barrels.

Stocks of raw materials at the country’s largest terminal in Cushing dropped by 730,000 barrels. Gasoline reserves increased by 2.3 million barrels, distillates - by 2.1 million barrels.

Analysts also pay attention to the data of the monthly short-term forecast of EIA that the average daily oil production in the U.S. in May reached another historic maximum - 10.71 million barrels per day, which is 80,000 barrels per day more than in April. The estimation of production in the U.S. in 2018 was increased to a record 10.8 million barrels per day against the May estimate of 10.7 million.

The market is also cautiously awaiting the next meeting of the OPEC countries on June 22 and the meetings of the ministerial monitoring committee of OPEC + (June 21) and OPEC + (June 23).

OPEC and non-OPEC producers reached an agreement in December 2016 to curtail oil output jointly and ease a global glut after more than two years of low prices. OPEC agreed to slash the output by 1.2 million barrels per day from January 1.

Non-OPEC oil producers such as Azerbaijan, Bahrain, Brunei, Equatorial Guinea, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan, and South Sudan agreed to reduce output by 558,000 barrels per day starting from January 1, 2017.

OPEC and its partners decided to extend its production cuts till the end of 2018 in Vienna on November 30, as the oil cartel and its allies step up their attempt to end a three-year supply glut that has savaged crude prices and the global energy industry.