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Oil Prices Edge Down as Traders Eye OPEC+ Meeting

Oil Prices Edge Down as Traders Eye OPEC+ MeetingOil Prices Edge Down as Traders Eye OPEC+ Meeting

Oil prices edged down on Monday as traders took profits, with OPEC considering meeting as soon as this week to discuss whether to extend record production cuts beyond end-June.
Brent crude fell 15 cents, or 0.4%, to $37.69 a barrel, in the first day of trading in the contract with August as the front month, CNBC reported. WTI crude futures for July delivery were at $35.36 a barrel, down 13 cents, or 0.4%.
The price falls come after front-month Brent and WTI prices posted their strongest monthly gains in years in May. Gains were boosted by OPEC crude production dropping to its lowest in two decades, with demand expected to recover as more nations emerge from coronavirus lockdowns.
“The focus is very much on OPEC+,” OCBC economist Howie Lee said, referring to OPEC and its allies including Russia. OPEC+ agreed in April to reduce output by an unprecedented 9.7 million barrels per day in May and June after the coronavirus pandemic ravaged demand.
“We might see a cautious pullback in crude prices given that downstream prices haven’t caught up ... but if OPEC+ does come up with a three-month extension, there is a possibility that prices may hit the $40 level,” Lee said. 

 

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