NEW YORK (Reuters) - Oil prices fell on Thursday, on concerns of lingering global oversupply as Russia considered a future output resumption and OPEC boosted its July production numbers.
Russian oil producer Gazprom Neft (SIBN.MM) considers it "economically feasible" to resume production in mature fields after a global agreement among OPEC and non-OPEC expires, a representative of the company said.
U.S. West Texas Intermediate crude CLc1 was down 35 cents or 0.7 percent to $49.21 a barrel. Brent crude futures LCOc1 were down 16 cents or 0.3 percent to $52.54 a barrel by 12:12 p.m. ET (1612 GMT).
The Organization of the Petroleum Exporting Countries raised its outlook for oil demand in 2018 and cut its forecasts for output from rivals next year, yet another increase in the group's production suggested the market will remain in surplus despite efforts to limit supply.
OPEC said its oil output rose by 173,000 bpd in July to 32.87 million bpd, led by the exempt producers plus top exporter Saudi Arabia, citing figures it collects from secondary sources.
Crude prices are down nearly 7 percent so far this year, pressured by concern that output cuts by OPEC and its partners may not eliminate the global crude glut.
Saudi Arabia said on Tuesday it would cut supplies by up to 10 percent in September to most buyers in Asia, the world's biggest oil-consuming region.
In a sign that investors are turning more optimistic about the pace at which oil supply and demand are rebalancing, prices for crude for prompt delivery are trading above those for delivery further in the future. LCOc1 LCOc2
"This is the march toward the flattening of the curve," said SEB chief commodity strategist Bjarne Schieldrop.
Oil prices drop 1.5% amid global glut, falling U.S. stocks
August 10, 2017 by Leave a Comment