Oil prices fall as OPEC boosts supplies

Oil Ticks Up to End a Volatile Week

Oil Ticks Up to End a Volatile Week

OPEC's July output climbed as Saudi Arabia pumped near-record volumes, while Russian Federation boosted production to unprecedented levels since it joined the cartel in a coordinated cut in January 2017. U.S. government data on Wednesday showed a surprise gain in nationwide stockpiles.

Oil prices are feeling the effects of ongoing tensions over global trade, with markets concerned about any slowdown in growth around the world.

While the Saudis and their Gulf allies said they would increase production to make up for countries unable to, Iran argues that they're violating individual country targets and ultimately betraying the organisation.

Oil prices were on the downward trajectory on Tuesday even though Chief Executive Officer, BP, Bob Dudley, said he saw a series of supply-side issues that would be supportive in the short-term, according UPN.

Somewhat limiting the down move, traders keep looking to the potential U.S. sanctions on Iran's oil exports.

The West Texas Intermediate (WTI) for September delivery lost 0.47 US dollar to settle at 68.49 dollars a barrel on the New York Mercantile Exchange, while Brent crude for October delivery erased 0.24 dollar to close at 73.21 dollars a barrel on the London ICE Futures Exchange.

Brent crude futures were at $73.40 per barrel, down 5 cents from their last close. The contract declined $2.47 in the previous two sessions.

USA nonfarm payrolls rose in July but the US trade deficit recorded its biggest increase in more than 1-1/2 years in June as the boost to exports from soybean shipments faded and higher oil prices lifted the import bill.

That compares with a forecast for a 3-million-barrel decline in a Bloomberg survey of analysts. Stockpiles at the Cushing storage hub in Oklahoma fell for an 11th straight week. "They will bring in more US crude in the second half of the year because a wider WTI-Dubai spread is making USA crude purchases economically viable", said Kim Jae-kyong, a research fellow at Korea Energy Economic Institute.

Alongside Russia, OPEC kingpin Saudi Arabia and other members of the Middle-East dominated oil cartel agreed in late June to begin increasing production by up to 1 million barrels per day starting in August.

SEOUL/SINGAPORE, Aug 2 (Reuters) - South Korean imports of USA crude oil are set to hit all-time highs in September and October as refiners snap up supplies to replace Middle East grades, four sources with knowledge of the matter said.

Meanwhile, Russia's Energy Minister, Alexander Novak said his country boosted its production in July to just below the post-Soviet record set in October 2016.

At the moment the barrel of WTI is losing 0.04% at $69.25 facing the next down barrier at $68.33 (low Aug.1) followed by $68.12 (100-day sma) and then $67.08 (low Jul.18).

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