Oil falls after United States crude inventories unexpectedly rise

Oil falls after United States crude inventories unexpectedly rise

The market has also seen a buildup in the inventories.

"OPEC supply changes remain the biggest uncertainties in the market", said Xi Jianrui, senior crude analyst with oil consultancy JLC said.

Saudi Arabia and Russian Federation were already discussing raising OPEC and non-OPEC oil output by roughly 1 MMBPD, sources familiar with the matter said in early May.

Brent crude futures, the global benchmark for oil prices, were at $77.45 per barrel at 0051 GMT, up 13 cents, or 0.2 per cent, from their last close. Gains grew when Algeria's oil minister indicated OPEC would focus on balancing the market rather than on rolling back production caps.

The surge in USA production has pulled down WTI into a discount versus Brent of more than $11 a barrel, its steepest since 2015.

Brent pared losses late in the session, settling down 2 cents at $75.26 a barrel.

Brent futures for August settlement declined 49 cents to US$74.89 a barrel on the London-based ICE Futures Europe exchange, after closing 9 cents higher yesterday. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High!

It's not clear how the USA request has been conveyed, and the White House declined to comment on conversations.

Opec and Russian Federation meet on 22 June to discuss production policy.

Oil prices were stable on Friday, supported by Venezuela's struggles to meet its supply obligations and by ongoing output cuts led by producer cartel OPEC, although surging United States crude output was looming over markets.

An economic crisis fed by the country's political instability has limited global supply, helping the Organisation of the Petroleum Exporting Countries (OPEC) hit its target for reduced output faster than expected. Its output has been hampered by inadequate investment, mismanagement and USA sanctions. The backlog is so severe, PDVSA has told some customers it may declare force majeure, allowing it to temporarily halt contracts, if they do not accept new delivery terms.

Iran on Friday blasted a USA request that Saudi Arabia increase its oil production to make up for a drop in Iranian exports in the wake of President TrumpDonald John TrumpTrump to leave G-7 summit early, travel directly to Singapore Stormy Daniels's former attorney files defamation suit against her Justice Department seizes reporter's phone, email records in leak probe: report MORE's decision to reimpose sanctions on Tehran.