Oil prices fall on concerns supply to rise as producers wrangle on cuts

Oil prices fall on concerns supply to rise as producers wrangle on cuts

04 Jun 2020 09:47 AM
 

Oil prices fell on Thursday, reversing gains in the previous session, on concerns that supply will rise if major producers are unable to agree to extend the depth of output cuts that have supported recent gains.

Brent crude futures fell 1%, or 41 cents, to $39.38 a barrel as of 7:27 am. Currently, trading at $39.28 per barrel.

U.S. West Texas Intermediate (WTI) crude futures fell 1.6%, or 61 cents, to $36.68 a barrel.

Saudi Arabia and Russia, two of the world's biggest oil producers, have agreed to support extending into July the 9.7 million barrels per day (bpd) in supply cuts backed in April by the OPEC+ group, comprised of the Organization of the Petroleum Exporting Countries and other major producers.

However, they failed to agree on holding an OPEC+ meeting on Thursday to discuss the cuts, with OPEC sources saying it would be conditional on countries that have not complied with their targets deepening their cuts.

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