Oil price drops in Asia over concerns about OPEC+ and US oil demand
Crude oil bounced back from nearly three-month highs previously achieved, after a dispute over compliance with the production cut-off agreement threatened OPEC+'s unity, while US data cast a shadow over the assumption that demand in the world's largest consumer country is recovering rapidly.
August futures on Brent rose above US$40 on Wednesday for the first time in almost three months, but at Asian trading on Thursday it fell by 1.3% to US$39.30 per barrel. WTI oil with delivery in July fell 1.9% to US$36.58 per barrel today ahead of the start of trading in Europe after rising 1.3% on Wednesday..
OPEC and its allies are unlikely to meet this week, as Saudi Arabia and Russia have taken a tough stance on the issue of quota fraud by some countries. OPEC+ leaders have warned other alliance members that the talks planned for next week may also fail unless countries like Iraq and Nigeria make firm promises to adhere to production quotas, sources familiar with the issue said.
Saudi Arabia proposed to postpone the OPEC+ meeting to mid-June to have more time to analyze May data. By that time, data from six independent sources used by OPEC to estimate production volumes will be available.