The oil in New York went down in almost four months to the longest series of losses. Saudi Arabia and Russia said they would increase production to alleviate consumer concerns after prices rose again in 2014.
West Texas Intermediate Falls As much as 3.1 percent, while Brent crude futures were trading above $ 80 a barrel last week, collapsed to close to $ 75 on Monday in London. Saudi Arabia and Russia signaled that they will restore part of their production under an agreement between OPEC and its allies, which entered into force in January last year. The potential resistance of several manufacturers could complicate the group's efforts to reach consensus when it meets in Vienna next month.
Oil rose to a 3 1/2-year high in early May after US President Donald Trump opted for a renewal of sanctions against Iran and a drastic impoverishment of Venezuelan production stoked concern over disruptions. The Organization of Petroleum Exporting Countries and their Partners are said to have reduced their market surplus despite record US production, a possible step towards relief cuts that surpass the group's goals.
"It has always been difficult to announce when production cuts should be eased," said Ole Sloth Hansen, head of commodity research at Saxo Bank A / S in Copenhagen. "Oil was already on the defensive."
West Texas Intermediate for July fell by $ 2.08 to $ 65.80 a barrel on the New York Mercantile Exchange, trading at $ 66.75 at 13:50. in Dubai. It was on its way to the fifth consecutive daily decline, the longest streak since 9 February. There is no settlement Monday due to the US Memorial Day holiday. Transactions are posted on Tuesday for billing purposes. Prices fell $ 2.83 on Friday to $ 67.88, the largest loss since July 5. Total traded volume was 45% above the 100-day average.
Brent futures for the July settlement fell $ 1.95 to $ 74.49 a barrel. based ICE Futures Europe Exchange and traded at $ 75.34 a barrel. Prices on Friday lost $ 2.35 to $ 76.44. The global benchmark's crude price was $ 8.63 on WTI in the same month, the largest close since March 2015.
Futures for September delivery fell 3.4 percent to 464.3 yuan per barrel on the Shanghai International Energy Exchange  Demand concerns
Higher crude oil prices are beginning to affect demand, said Daniel Yergin, vice chairman Consultant IHS Markit Ltd. on Friday. He reiterated concerns voiced a week earlier by the International Energy Agency, which advises major oil-consuming nations. US President Trump criticized OPEC last month for contributing to higher crude oil prices.
OPEC and its allies are expected to gradually increase oil production in the second half of the year, Khalid Al-Falih said last week in St. Petersburg International Economic Forum in Russia. He and his Russian colleague Alexander Novak previously said that while the delivery restrictions were "on the table", no decision was made.
The group must unanimously decide whether to adjust production, said Suhail Al Mazrouei, UAE Energy Minister and OPEC rotating presidency president. "No decisions are made by two or three countries," he said Friday in an interview in St. Petersburg. "We respect all member countries."
The declining production of some manufacturers gives countries like Russia "a very good opportunity to increase production without putting too much pressure on the market," said Hansen of Saxo Bank. As long as the producers do not cut more than promised, the Saudi-Russian proposal should be "a simple sale inside and outside OPEC," said Hansen of Saxo Bank.
President Vladimir Putin said last week that the price of oil of $ 60 fully suits Russia, and the country does not want it to turn higher. Anything beyond that "can cause problems for consumers, which is not good for producers," he said. OPEC and its nation do not intend to stay with existing production cuts, he said.
- Saudi Arabia's and Russia's potential policy shift changed the Goldman Sachs Group Inc., the bank's analysts, not material (19659021) including Damien Courvalin said Brent's bank forecast at $ 82.50 a barrel in the third quarter to repeat.
- Oil drilling in the US rose Friday at 15 to 859, the highest level since March 2015, according to Baker Hughes data. Hedge funds lowered their net long positions – the difference between Betting on a price increase and betting on a decline – Brent crude for the most in almost a year.