MR: Oil prices fall as oversupply weighs on markets
SINGAPORE – Crude oil prices fell in early Asian trading on Wednesday as oversupply weighed on markets, with OPEC not expected to announce a production cut at its meeting on Friday.
Core Gulf members of the Organization of the Petroleum Exporting Countries (OPEC), which controls over 40 percent of the world’s crude production, have a consensus to keep the group’s oil output in place at its meeting this week, a senior Gulf OPEC delegate told Reuters in Vienna on Tuesday.
“There is consensus among Gulf OPEC countries, and others, to keep the (production) ceiling unchanged,” the source said.
“Nobody wants to rock the boat. The meeting is expected to be smooth sailing.”
High production by OPEC, but also from other regions like U.S. shale producers and Russia, has contributed to oversupply and left tankers filled with millions of barrels of oil without buyers.
FUNDAMENTALS
Front-month U.S. crude futures were down 35 cents from their last settlement at $60.91 per barrel by 0027 GMT on Wednesday.
Brent futures fell 29 cents to $65.20 a barrel.
MARKETS
The U.S. dollar saw one of its biggest one-day decline against a basket of major currencies in nearly two years on Tuesday, pulled down by a stronger euro rose on expectations that Greece would reach a deal with its creditors. Athens faces a Friday deadline to repay 300 million euros ($329.58 million) to the International Monetary Fund.
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