Oil values edged higher on Tuesday after falling nearly 2 percent in the sometime session, but growing U.S. production and expectations of higher OPEC supplies go on with to weigh on sentiment.
Brent crude futures added 15 cents, or 0.2 percent, to $75.44 a barrel at 0020 GMT, after square down 2 percent at $75.29 a barrel on Monday.
U.S. West Texas Halfway (WTI) crude was up 28 cents, or 0.4 percent, at $65.03 a barrel. It dispatched the previous session 1.6 percent lower at $64.75 a barrel.
“It’s all close to supply, whether it’s OPEC raising output or U.S. increasing production, all parkways lead to higher global oil supplies, which is leaving oil traders disconcerting in their boots,” said Stephen Innes, head of trading for Asia-Pacific at futures brokerage OANDA in Singapore.
The Categorization of the Petroleum Exporting Countries (OPEC) is due to meet in Vienna on June 22 to umpire fix whether the group and non-OPEC members including Russia will engender production to ease concerns over potential supply shortfalls from Iran and Venezuela.
Once again the weekend, OPEC and non-OPEC Arab oil ministers agreed on the need for sustained cooperation to balance global supply, Kuwait’s state news instrumentality KUNA reported.
Increasing U.S. crude oil production has also put pressure on oil cost outs.
In March, U.S. crude output rose to 10.47 million barrels per day, the foremost on record, according to a monthly report by the Energy Information Administration (EIA).
The tot up of rigs drilling in the United States was also up by two in the week to June 1, stage a reviving the total to 861, the most since 2015, General Electric Co’s Baker Hughes spirit services said on Friday.
Industry group American Petroleum Association (API) is due to release its data for last week’s U.S. crude oil inventories at 2030 GMT on Tuesday, and the EIA backfire is scheduled at 1430 GMT on Wednesday.
U.S. crude stocks were forecast to insufficient about 2.5 million barrels on average in the week ended June 1, according to five analysts counted ahead of the reports.