After recording a $2 drop and closing the previous week above the $65 handle, the barrel of West Texas Intermediate started the new week in a quiet way and edged lower toward $65 before making a recovery in the NA session. As of writing, in the post-settlement trade, the barrel of WTI is trading at $66.10, adding 30 cents, or 0.5%, on the day.
Today’s headlines failed to dissipate the uncertainty surrounding a possible OPEC supply hike. “Last week, we saw some news stories indicating that the Trump administration had asked OPEC to increase oil production. But the week went out and we saw those stories walk back. And now we’re seeing a number of OPEC producers who are in favor of the status quo,” Andrew Lipow, president of Lipow and Associates in Houston, told Reuters.
Commenting on rumors of the US administration asking for an output hike, Suhail Al Mazrouei, the current head of OPEC and energy minister of the United Arab Emirates, said that they haven’t received any official or unofficial communication on that issue.
On the other hand, earlier today in a published statement, Iraq’s Oil Minister Jabar al-Luaibi said that oil market still needed support and stability and argued that the market’s higher supply could cause a big harm to the global markets.
Ahead of the important meeting on June 22, OPEC headlines are likely to continue to dominate crude oil’s price action. Later this week, inventory data from the United States will also be followed closely especially following last week’s surprise increase.
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