Oil price fall to $75 pb on rising supply by US

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The two countries together accounted for nearly 17% of world oil consumption past year, making them ideally suited to take on the oil exporting cartel.

At least three OPEC members disagree with Saudi Arabia and Russian Federation on the need to pump more oil, OPEC sources said, complicating any official decision to boost supply just as consuming nations are warning of a shortage.

Washington and Iran exchanged sharp words over oil prices on Wednesday, with Trump blaming OPEC for high oil prices and Tehran accusing him of stoking volatility after he withdrew last month from the nuclear deal. "Oil prices are artificially Very High!"

Saudi Arabia last month signaled it was ready to boost output in the second half of the year to ease consumer anxiety about higher prices, a policy U-turn for the kingdom that only weeks earlier advocated for production restraint. USA light crude was 35 cents lower at $66.01.

Oil prices fell on Wednesday, pulled down by rising supplies in the United States and the expectation that voluntary output cuts led by producer cartel Opec could be loosened.

"Even if the Iran-Venezuela supply gap is plugged, the market will be finely balanced next year and vulnerable to prices rising higher in the event of further disruption", the Paris-based agency said. Trump tweeted on April 20. The OPEC is also facing internal differences between members like Saudi Arabia and those like Iran, Iraq and Venezuela.

"The demand metrics here are awesome for crude oil and gasoline", said John Kilduff, a partner at Again Capital in New York, Reuters reported.

Oil price report released yesterday by OPEC showed that Brent crude was down 20 cents at $75.68 a barrel, as USA light crude was 35 cents lower at $66.01.

U.S. West Texas Intermediate (WTI) crude futures were at $65.92 a barrel, down 44 cents, or 0.7 percent from their last settlement.

"Markets are braced for the most fractious conference as OPEC members look fundamentally divided", said Phillip Futures analyst Benjamin Lu.

According to the ministry, Pradhan is scheduled to visit Vienna on June 20-21 to participate in the OPEC worldwide seminar and will discuss these key issues with OPEC Secretary General Sanusi Barkindo and ministers from the 13-nation cartel.

Predictions for the scale of increase ranged from about 180,000 barrels a day to as much as 1 million barrels.

OPEC producers and non-OPEC countries struck a deal in 2016 to trim production by 1.8 million barrels per day to reduce a global glut of oil. According to the industry experts, both the countries are reportedly ready to increase their oil output, with new streamlined oil and gas projects in both Middle East and Africa.

And a fifth OPEC source said that if OPEC decided next week to raise output it would not be with "immediate effect" and would be gradual, suggesting supply would not rise for three to four months after a June decision.

"The United States shows by far the biggest gain (about 75 percent of the total across 2018 and 2019), but recently this expansion has not been without stress", the report said, referring to a gap in recent weeks between the U.S. and European oil futures contracts.