Oil prices show a significant decrease as Iran hints it might be won over by a small rise in OPEC crude output which could open the doors to oil producing countries (OPEC) to potentially increase oil prices during the upcoming meeting, reports Reuters.
Iran, considered a major supplier within the producer cartel Organisation of the Petroleum Exporting Countries (OPEC), said on June 20th it could agree on a small increase in the group’s output during a meeting to be held at OPEC’s headquarters in Vienna on June 22nd together with non-OPEC member but top producer Russia.
“There appears to be an air of confidence that this deal will move through,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.
“We expect OPEC and Russia to gradually add supplies back into to the market by next year, mostly offsetting the almost 1 million barrels per day (bpd) supply disruption in Venezuela,” Barclays bank said.
Regarding US inventories, the American Petroleum Institute said its primary estimates showed US crude supplies fell by 3 million bbl for the week ended June 15th. The US Energy Information Administration was scheduled to release its weekly inventory report on June 20th.