Oil prices fell on Thursday with doubts about the concerns with major crude oil producing countries’ ability to agree to extend the production cuts, and concerns about the US inventory structure.
Brent crude LCOc1 futures were down 19 cents to $39.60 a barrel at 1211 GMT, heading for their first fall in six sessions. West Texas Intermediate (WTI) crude CLc1 futures dropped 40 cents to $36.89.
Two of the world’s largest oil producers, Saudi Arabia, Russia and other major producers, agreed to support the extension of the 9.7 million barrels (bpd) supply cut by the OPEC group in July, which includes the Organization of Petroleum Exporting Countries.
However, holding an OPEC + meeting to discuss cuts shows that countries that have not met their goals so far continue to adhere to the deepening of their cuts.
Saudi Arabia, Kuwait and the United Arab Emirates are not planning to make an additional production cut of 1.18 million bpd after June. This indicates that crude oil supply may increase independently next month, despite any OPEC + decision.
US official data showed gasoline stocks increased by 2.8 million barrels and nearly tripled more than analysts had expected. Distilled stocks increased 9.9 million barrels, about four times more than expected.
The volume of petroleum products traded in the Asian market dropped 74% in May compared to the previous year.
