U.S. crude oil prices fell Wednesday after a sharp drop in U.S. crude stocks and Opec member Iraq said the cartel would discuss deepening output cuts amid ongoing demand concerns.
Brent crude fell 0.19%, to $62.26 a barrel, while U.S. West Texas Intermediate crude dropped 0.61%, to $57.05/Bbl, Kallanish Energy reports.
Oil prices have risen more than 7% this month, supported by declines in global inventories and signs of easing trade tensions between the U.S. and China, the world’s two largest energy consumers.
Prices rose this week after Prince Abdulaziz bin Salman, Saudi Arabia’s new energy minister, said oil policy would not change and said an Opec+ (most Opec members along with 10 non-Opec producers led by Russia) deal to cut output by 1.2 million barrels per day (Mmbpd) would be maintained.
Iraqi oil minister Thamer Ghadhban said the Opec countries would discuss whether to deepen cuts, when ministers meet tomorrow. He said Opec had discussed cuts of 1.6 Mmbpd to 1.8 Mmbpd, when considering output curbs last year, Reuters reported.
Russian energy minister Alexander Novak said the Opec+ alliance would discuss global oil demand, but added there were no fresh proposals to change production cut volumes.
Crude inventories for the week ended Sept. 6, fell by 6.9 million barrels (Mmbbl) from the previous week, according to the Energy Information Administration. This compares with analysts’ expectations for a decrease of 2.7 Mmbbl. (See story elsewhere in this issue.)
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