Oil Edges Up Ahead of OPEC Market Report

Brent crude, the global oil benchmark, was up 0.25% to $76.65 a barrel on London's Intercontinental Exchange.

"Early in the session, prices fell in response to a bearish report from JPMorgan on Friday that said, 'Non-OPEC supply is expected to rise sharply in 2019, led by US shale growth, along with Russia, Brazil, Canada and Kazakhstan".

Reports started circulating that Saudi Arabia and Russian Federation have discussed lifting the oil production of the OPEC/NOPEC nations part of the deal by as much as 1 million bpd.

Finally, sellers were also responding to another rise in new rigs drilling for oil in the United States.

Earlier this week, Bloomberg reported that the United States had quietly asked Saudi Arabia and several other OPEC nations to raise oil production by some one million barrels per day (bpd).

Question marks over global economic growth, and resulting oil demand, as well as over USA producers' capacity to pump oil at an ever faster pace make forecasting hard, the Organization of the Petroleum Exporting Countries said in its regular monthly oil market report.

The minister, Jabar al-Luaibi, said that oil prices still require support and stability, and producers "should not over-exaggerate" the oil markets need for more supplies.

According to a statement, the minister also "rejects unilateral decisions by some oil producers without consulting the rest of the members'" of the OPEC and non-OPEC producers who took part in the reduction agreement.

A senior U.S. official had called Saudi Crown Prince Mohammed bin Salman before President Trump announced his decision on the Iran nuclear deal, to make sure that the United States could count on OPEC's largest exporter and de facto leader Saudi Arabia to keep prices stable, because Washington was concerned that the sanctions could drive oil prices up.

We continue to expect a two-sided trade as investors prepare for the OPEC meeting in Vienna on June 22.

Saudi Arabia boosted daily oil output in May to the highest level since October, ahead of meetings with Russian Federation and other global producers next week where they may propose raising production even further and phasing out 18 months of voluntary cuts. However, the market bottomed last week after Venezuela said it may have to cancel all of its delivery contracts.

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