Oil drops on fears around production increase

Global oil prices fell by more than 1.5% on June 2 morning as markets are evaluating the news about a possible increase in production by Saudi Arabia.

The price of August futures for Brent crude fell by 1.55% to $114.49 per barrel, and July futures for WTI dropped by 1.7% to $113.3.

Earlier, the Financial Times reported that Saudi Arabia is ready to increase oil production if Russia’s production falls significantly amid Western sanctions. Expectations of an increase in the production of oil hold back the prices.

The statistics from the American Petroleum Institute (API), published recently, isn’t upbeat, either. US commercial oil inventories fell by 1.2 million barrels in the week ending May 27, according to the institute.

Official statistics on US commercial inventories for the past week will be published by the country’s Department of Energy on June 2 evening. Analysts expect a 1.4-million-barrel decline in inventories.





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