Oil prices dip following US sanctions on Russian producers — Reuters
Photo: Oil prices fall again after brief rise (Getty Images)
On November 11, oil prices fell in Asian trading as concerns about oversupply outweighed uncertainty over the impact of US sanctions on Russian oil giants Rosneft and Lukoil, Reuters reports.
Oil prices fell
Brent crude futures fell 12 cents, or 0.2%, to $63.94 per barrel. West Texas Intermediate crude oil was trading at $59.99 per barrel, down 14 cents, or 0.2%.
The agency notes that both benchmarks rose by about 40 cents the day before.
Although progress toward restoring government operations has generally supported the markets, concerns about excess crude oil supply are holding prices back.
OPEC+ increases production despite risks of excess
"The oil market is also facing a considerable oversupply in the coming year, which is why prices are likely to remain under pressure. The main cause of the oversupply is the significant expansion of supply by OPEC+," Commerzbank analysts say.
Earlier this month, OPEC+ agreed to increase production targets for December by 137,000 barrels per day, as in October and November.
At the same time, the group also agreed to suspend production increases in the first quarter of next year.
US sanctions
Despite the oil glut caused by rising OPEC supplies, US sanctions remain a key factor. ANZ analysts noted in a Tuesday note that US President Donald Trump's latest measures are directed against Rosneft and Lukoil.
Oil prices rose on Monday, November 10, amid optimism about a possible quick end to the US government shutdown and increased demand in the country, which is the world's largest oil consumer.
OPEC+ countries intend to approve a small increase in production in December. The meeting is scheduled to take place online today.
