by Arathy Somasekhar
HOUSTON (Reuters) – Oil prices began falling on Tuesday after a report that some producers are exploring the idea of suspending Russia’s participation in the OPEC+ production deal.
Although there has been no official pressure on the Organization of the Petroleum Exporting Countries (OPEC) to pump more oil to close Russia’s potential deficit, some Gulf states are planning to ramp up production in the coming months, Wall Street reported, quoting OPEC delegates.
The most active contract, August Brent futures, fell $2, or 1.7%, to $115.60 a barrel after rising to $120.80 the day before. The first contract for July ended Tuesday, up $1.17, or 1%, to settle at $122.84.
US crude (WTI) closed at $114.67 a barrel, down 40 cents, or 0.4%, from Friday’s close. In the early hours of the session, the commodity touched $119.98, its highest level since March 9.
There was no WTI closure on Monday due to the US holiday.
“Russia’s removal from OPEC could be a precursor for Saudi Arabia and the UAE to use their spare production capacity because they will no longer feel they have a production quota agreement that should recognize Russia’s interests,” said Andrew Lipow of Lipow Oil. partners in Houston.
Despite the late reversal in the direction of the session, both indicators ended May higher and won for the sixth consecutive month. Both rose more than 70% during this period.
(Additional reporting by Shadia Nasralla and Jeslyn Lerh from London)
source: Noticias
