Crude oil futures declined on Thursday as the moods were marred by the record high oil production from Saudi Arabia amid speculation whether OPEC will take steps to raise prices, reported Finance Appraise.
Futures on US crude oil dropped by 0.15% to 46.72 dollars a barrel and on Brent – by 0.42% to 49.64 dollars per barrel.
The commoditiess market is still considering whether the oil cartel is ready to reach a deal to freeze production with producers outside OPEC to boost weak oil prices. At the same time, major manufacturers continue to expand their production.
Production of crude oil of OPEC has increased by 46 thousand barrels a day to an average of 33.11 million barrels per day in July.
Saudi Arabia announced a record high of 10.67 million barrels a day last month, while yields on Iran is again slightly below the level from before the sanctions of 4 million barrels per day.
Moreover, recent news in the media indicate that Saudi Arabia can boost production to 10.8 to 10.9 million barrels per day in August, which will be a new record and will overtake Russia’s production.
Analysts warn on the likelihood of price rally based on future talks between OPEC producers since such meetings earlier this year failed to lead to any result, disappointing oil markets.
From the supply side, the US Energy Information Administration said on Wednesday that crude oil reserves in the US fell by 2.5 million barrels last week while analysts predicted an increase of 400 thousand barrels.
The number of drilling rigs working in the US is rising for the seventh consecutive week, signaling that on the markets will appear more oil. Recent data on the number of wells, prepared by Baker Hughes, will come out on Friday.
Meanwhile, stocks of gasoline fell by 2.7 million barrels last week, well above expectations for a decline of 1.5 million barrels.