Oil prices steady after downward trend over supply concerns
Oil prices steadied on Wednesday after slipping prices as Saudi Arabia and Russia say they will pump more crude oil in response to falling global crude inventories and rising consumer prices.
Saudi Arabia and Russia have discussed raising OPEC and non-OPEC oil production by one million barrels per day (bpd) to counter potential supply shortfalls from Venezuela and Iran.
Brent crude was up one cent at 75.40 dollars a barrel by 0619 GMT.
U.S. West Texas Intermediate crude was up 10 cents, at 66.83 dollars a barrel.
“OPEC has over-delivered on supply cuts in the past six months,” Harry Tchilinguirian, global head of commodity market strategy at French bank BNP Paribas, said in a note to clients.
“There is … scope for an increase in OPEC output.”
OPEC-led supply curbs have largely cleared an inventory surplus in industrialized countries, and stocks continue to decline.
The Organisation of the Petroleum Exporting Countries is due to meet in Vienna on June 22.
Credit Suisse analysts on Tuesday said even if Russia and OPEC producers raise output, they would likely only add an additional 500,000 bpd.
The move would leave inventories in the most developed countries short of the five-year average by the end of 2018.
Falling share prices and a stronger U.S. dollar index also weighed on oil prices.
A stronger dollar makes greenback-denominated commodities more expensive for holders of other currencies.