Crude Oil Prices - Weekly Outlook: July 30
Investing.com - Worries over increased global supplies are likely to take a toll on oil prices in the week ahead, after they logged their fourth straight weekly loss last week amid emerging evidence of oversupply.
Russia’s energy minister, Alexander Novak, indicated Friday that a coalition of producers could pump more oil than agreed by year-end, a move which could signal the possible death of an OPEC production deal.
Speaking on the sidelines of the BRICS summit in Johannesburg, South Africa, Novak said he “did not rule out…an increase in oil production in excess of 1 million barrels a day may be discussed.”
The Organization of the Petroleum Exporting Countries (OPEC) and other oil producers led by Russia agreed last month to ease production curbs to make up for lost supplies out of Libya, Venezuela and Iran.
The deal effectively increases combined oil output by 1 million barrels per day (bpd).
Meanwhile, oil traders will continue to monitor any potential disruptions to oil flows, especially from the Middle East.
Last week, Saudi Arabia temporarily paused shipments through the Red Sea's Bab el-Mandeb strait, one of the world's most important tanker routes, after two of its oil tankers were reportedly attacked by Houthi rebels.
An estimated 4.8 million bpd of crude oil and refined products flowed through the Bab al-Mandeb strait in 2016 toward Europe, the U.S. and Asia, according to the U.S. Energy Information Administration.
Elsewhere, fresh weekly data on U.S. commercial crude inve....