TOKYO: On Friday, oil prices fell for a third day as supply fears persisted, with OPEC set to add additional barrels amid optimism that demand will resume as more countries recover from the pandemic. By 0018 GMT, Brent crude was down 20 cents, or 0.3 percent, at US$73.27 a barrel, and was on track for a 3% drop this week after two days of steep falls.
US crude slipped 12 cents, or 0.2 percent, to US$71.53 a barrel, putting it on track for a 4% drop this week.
The Organization of Petroleum Exporting Countries, Russia, and other producers, known as OPEC+, failed to reach an agreement on supply policy this month after the United Arab Emirates (UAE) opposed to extending the output strategy beyond April 2022.
Saudi Arabia and the United Arab Emirates are nearing a deal that will allow greater supplies into the market.
OPEC said on Thursday that it expected global oil demand to rise next year to about 100 million barrels per day (bpd), similar to levels experienced before the epidemic, driven by demand growth in the United States, China, and India.
According to the data, OPEC output grew by 590,000 bpd in June to 26.03 million bpd.
“We expect high prices to incentivize more production from the group even without a formal agreement to do so,” Capital Economics said in a note. “Output should rise further in July on the back of larger quotas, and we expect high prices to incentivize more production from the group even without a formal agreement to do so.”
A huge drop in US crude stockpiles has done nothing to sustain prices, as a rise in inventories in the week leading up to the Fourth of July vacation, when driving often spikes, has generated new demand concerns.
(Aaron Sheldrick contributed reporting.) Gerry Doyle edited the piece.)/n
