Oil price has increased by one per cent in the early market trading at the forefront of OPEC meeting in Vienna today, as uncertainty prevails whether OPEC and non-OPEC countries would agree on increasing crude output
As reported by Reuters, the international benchmark for oil prices Brent crude was at US$73.88 per barrel at 0144 GMT, up 1.1 per cent from their last closure. The US West Texas Intermediate (WTI) crude priced US$66.49 per barrel, up 1.5 per cent from the last close, said the source.
According to the international market leaders, the up in oil price is mainly due to the strong market demand to increase oil production ahead of today’s OPEC meet which is anticipated to see oil-producing countries abandoning their historic supply pact in the second half of 2018 and raise oil output to meet global demand.
However, the scepticism looms over the market, as OPEC-member Iran is opposing the output increase, although Saudi Arabia and Russia favouring it.
Speaking to the source, Phillip Futures, global oil brokerage, said that it expects 300,000–600,000 bpd hike jointly by Saudi Arabia and Russia. ANZ bank, Australia’s largest bank, wants OPEC to moderately increase production to make up for unplanned supply disruptions worldwide.
Today’s OPEC meeting is also highly important for the market watchers amid the growing trade tension between the US and China, where both the countries have warned imposing import tariffs on each one’s crude products.
