Oil prices decline with the continued pressure on OPEC to increase production and the strengthening of the dollar.
Oil prices dropped amid continued US pressure on OPEC to increase production and a stronger dollar. West Texas Oil fell 1.6 percent, while losses were more limited in Brent oil.
US Secretary of State Antony Blinken called for increasing oil production during a meeting with Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs of the United Arab Emirates (UAE). Stating that the USA is worried about creating a balanced energy market, Blinken called for further production until energy markets and economic conditions normalize after the Covid-19 outbreak. OPEC production increase was limited to 140,000 barrels per day last month.
While Middle Eastern countries such as Saudi Arabia, Iraq, and the United Arab Emirates achieved production increases at the predicted levels, Angola’s daily production decreased by 70,000 barrels to 1.1 million, the lowest level in 14 years seen at the beginning of this year.
According to private-sector data shared by the American Petroleum Institute, oil and fuel stockpiles in the US followed a mixed course last week. Stocks in Cushing, Oklahoma, the central storage hub, declined as national crude stockpiles rose.
West Texas Oil for December delivery fell to $82.60 a barrel after losing 1.6 percent on the Nymex market. Brent oil for January delivery fell 1.2 percent to $83.69 a barrel on the London ICE Futures Europe market.