Oil prices fall as Russia, US look to boost supplies

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The company, after cutting Saudi imports, has bought a record 16 million barrels (533,000 bpd) of USA crude, to load in June, two sources with knowledge of the matter said.

The drop was accompanied by relatively heavy volume suggesting some capitulation from the extreme long crude speculative positioning.

United States stock markets sank more than 1 percent, while the dollar wobbled at a 10-month high against the euro. The final decision will not be made until OPEC and non-OPEC ministers meet in Vienna on 22-23 June. While Brent prices have risen some 14% over the past three months, WTI is up just 7.5%and Midland crude - the version of WTI priced in the booming Permian basin rather than the benchmark delivery point in Cushing, Oklahoma - is down 4.8%.

The 713,000 barrel-a-day decline in Opec's total supply between 2016 and last month can be accounted for nearly entirely by the decline in Venezuelan output, which has fallen by about onethird - 718,000 barrels a day - over the period.

US West Texas Intermediate crude CLc1 was down 24 cents, or 0.34 percent, at $66.49 a barrel.

Suhail Al Mazrouei, energy minister for the United Arab Emirates and current holder of OPEC's rotating presidency, said the group as a whole will decide whether to adjust production. Probably not, although India is among Saudi Arabia's largest clients, and its demand for oil is growing at the fastest pace in the world.

The International Maritime Organization (IMO) has set January 1, 2020, as the starting date from which only low-sulfur fuel oil will be allowed to be used for ships.

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"Shale oil production is giving WTI a false sense of security", Phil Flynn, the senior market analyst for the PRICE Futures Group in Chicago, told UPI.

There is also reason to be bullish for the fact that, according to some analysts, the additional supply that OPEC and Russian Federation plan to bring online would "barely" compensate for the loss of production from both Venezuela and Iran.

"The pace of the recent rise in oil prices has sparked a debate among investors on whether this poses downside risks to global growth", Chetan Ahya, chief economist at US bank Morgan Stanley, wrote in a weekend note.

Russia's oil output reached a 30-year high of 11.247 million bpd in October 2016 and it pledged to cut it by 300,000 bpd to 10.947 mln.

"The government is aware of the country's vulnerabilities to abrupt changes in the global oil situation and impending threats on the same, hence we are formulating various strategies to address those vulnerabilities to cushion the impact for our consumers", Cusi said on Monday.

Sources familiar with the matter said an increase of about 1 million bpd would lower compliance to 100 percent of the agreed level. The current United States rig count, that is the number of active rigs drilling for petroleum in the USA and a major indicator of the health of the U.S. oil industry, hit its highest level of the year last week.