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Oil Prices Dip Lower amid Supply Worries

Published 11/06/2018, 16:01
Updated 11/06/2018, 16:03
© Reuters.  Oil prices fell on Monday.
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Investing.com - Oil prices were lower on Monday as rising U.S. production and worry over increased supply from OPEC members continued to drag on investors.

Crude oil futures decreased 0.03% to $65.72 a barrel as of 11:01 AM ET (15:01 GMT). Meanwhile Brent crude futures, the benchmark for oil prices outside the U.S., fell 0.64% to $75.97.

Prices were held back slightly by concern that the U.S. is increasing production. Investors will be looking ahead to crude inventories data on Tuesday and Wednesday for clues on global oil demand and insight into how fast output levels are rising.

Oil prices have also been held back in recent weeks by worry that members of the he Organization of Petroleum Exporting Countries and Russia (OPEC) could increase supply.

The organization set to meet in Vienna on June 22 and is expected to decide whether or not to increase supply by one million barrels per day, as OPEC faces losses from Venezuela and Iran.

OPEC has been cutting crude output by 1.8 million barrels per day (bpd) to prop up oil prices. The pact began in January 2017 and is set to expire at the end of 2018.

Russian news agency Interfax reported on Saturday that Russia's oil production, had risen to 11.1 million bpd in early June, up from slightly below 11 million bpd in most of May and well above its target production of under 11 million bpd as part of the deal.

Investors are also looking ahead to reports this week, with the OPEC releasing its monthly report on Tuesday and the International Energy Agency publishing its report the day after.

In other energy trading, Gasoline RBOB Futures decreased 0.92% at $2.0915 a gallon, while heating oil fell 0.44% to $2.1548 a gallon. Natural gas futures was up 1.90% to $2.945 per million British thermal units.

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