Doubts Over OPEC Weigh on Crude Prices

Crude Oil

Crude Oil

Brent futures for August settlement declined as much as 62 cents to $75.26 on the London-based ICE Futures Europe exchange, after sliding 0.8 percent on Tuesday.

Trump sparked the latest back-and-forth on Wednesday when he renewed his attack on OPEC, saying in a tweet that oil prices are too high and blaming the cartel.

U.S. crude oil production for yet another week for week ending June 01-the most recent data available-increased to 10.800 million bpd, according to the EIA.

His tweet comes in advance of a meeting of the Organization of the Petroleum Exporting Countries and Russian Federation planned for June 22 in Vienna to discuss easing supply caps that have been in place since the beginning of 2017.

The IEA meanwhile warned that whatever the outcome of the meeting, "the market will be finely balanced next year, and vulnerable to prices rising higher in the event of further disruption".

OPEC will meet on June 22 in Vienna, Austria, to discuss future production policy.

"Saudi Arabia and Russian Federation have already started to lift production", he said.

"The prospect of easing supply curbs from OPEC-led producers continues to be reflected in oil's overall depressed price", said Lukman Otunuga, analyst at futures brokerage FXTM.

"While some members appear to be against the idea, we believe that we will see a gradual lifting of cuts", said Warren Patterson, a commodities strategist at ING Bank NV in Amsterdam.

Trump tweeted on Wednesday: "Oil prices are too high, OPEC is at it again".

Last week, the American Petroleum Institute (API) reported a build of 2.028 million barrels of crude oil.

The deal, which is due to run out at the end of 2018, has succeeded in boosting oil prices above $70 a barrel from below $30 a barrel in early 2016.

With output in Russian Federation rising back above 11 million bpd in June and Saudi production climbing to more than 10 million bpd, supplies from the top three producers are increasing.

"The U.S.is important to us, but. we have not received any official communication, or even unofficial communication, from the administration", he told CNN.

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