Saudi Arabia Hints at Output Cut Meeting Delay

Oil prices lost ground after a reported lag in a key meeting to widen production cuts by key exporters raised uncertainty over the deal.

New York-brokered unpaid income has fallen 49 cents, or 0.9 percent, to $ 52.02 a barrel by 8:10 AM ET (12:10 GMT), while Brent’s raw futures, a benchmark for pricing of oil outside the US lost 53 cents, or 0.9%, to $ 61.48.

Reuters told reporters on the other side of a ministerial meeting of the energy and environment G20 in Japan that, “We hope we will reach consensus to extend the deal when we meet for two weeks in Vienna.”

Asked when the meeting would be held, he said, “Maybe the first week of July.”

The remarks seemed a step back from the comments in early June that the members of the shortened manufacturing agreement were “close” to reaching an understanding.

Falih showed a week earlier that Russia, which heads non-OPEC members to the pact, was the only party still undecided.

The July reference served as a confirmation of weeks of speculation that the original dates for the meeting – June 25 for OPEC with non-OPEC members joining the next day – will be delayed at Russia’s request. OPEC has not yet formally changed the official schedule change.

“The longest OPEC delayed this meeting, the more doubt it will have enough support from its members and allies to cut critical cuts to offset some of the oil supplies that Falih talked about “Investing.com’s senior analyst Barani Krishnan said.

Oil prices have been under pressure from signs of weakening global demand and US output at record levels. Gross American is down about 22% from the April peaks, with the Brent barrel close behind dropping nearly 19%. According to CFTC data released on Friday, the long speculative net crude oil positions fell for a seventh straight last week to stay at their lowest level since the beginning of March.

The International Energy Agency warned in its monthly report released on Friday that the prospect for rising oil demand in 2019 has faded due to deteriorating opportunities for world trade. Over the weekend, US trade secretary Wilbur Ross dismissed the likelihood of President Donald Trump and his Chinese counterpart, Xi Jinping, by reaching an agreement at the G20 meeting on June 28 and 29. He reiterated that Trump was “totally happy”.

Elsewhere, Iran announced on Monday that it will break the internationally accepted border into its enriched uranium reserves for 10 days if Europe does not take steps to help alleviate the economic impact of US sanctions.

Tehran had previously threatened to reject the nuclear deal after the Trump administration withdrew from the pact last year and imposed economic sanctions.

US Secretary of State Mike Pompeo said on Sunday that the US “is considering a full range of options”, including military ones, about iranin, which he has accused of attacking two oil tankers near the Persian Gulf last week. Iran has denied the charges.

In other energy trade, gasoline revenue fell 0.9% to $ 1,7165 in gallons by 8:12 ET (12:12 GMT), while trading heat oil fell 0.8% to $ 1,8152 in gallons.

Finally, natural gas revenues fell 0.8% to $ 2.367 per million British thermal units./Investing.com

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