Oil Falls After OPEC Looks to Increase Supply

May 28, 2018 Share Print 0

Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains show no sign of slowing.

Brent crude futures LCOc1 stood at $75.02 a barrel at 1345 GMT (9.45 a.m. ET), down $1.42 from the previous close. The contract touched a three-week low of $74.49 earlier in the session.

U.S. crude futures were at $66.29, down $1.59, after hitting a six-week low of $65.80.

The spread between the two contracts CL-LCO1=R reached $9.38 a barrel, its widest since March 2015.

The Organization of the Petroleum Exporting Countries and other producers led by Russia began withholding 1.8 million barrels per day (bpd) of supplies in 2017 to tighten the market and prop up prices that in 2016 fell to their lowest in more than a decade at less than $30 a barrel.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.