Oil prices fell further on Monday 18 June 2018, pulled down by an
expectation that producer club OPEC and its allies will increase supplies.
Brent crude futures, the international
benchmark for oil prices, were at $73.05 per barrel at 0036 GMT, down 39 cents,
or 0.5 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $64.24 a barrel, down 82 cents, or 1.3
percent, from their last settlement.
The drops came after crude futures fell around 3
percent on Friday, hurt by concerns about rising output and a U.S.-China trade
"Oil prices tanked... after Russia
and Saudi Arabia all but confirmed a production increase," said Stephen
Innes, head of trading for Asia/Pacific at futures brokerage OANDA.
The producer cartel of the Organization of the
Petroleum Exporting Countries (OPEC), which is de-facto led by Saudi Arabia,
and some allies including Russia have been withholding output with since the
start of 2017. Producers will meet in Vienna on June 22 to decide forward
"Most industry observers are expecting a
production rise," said Innes, although he added that "the magnitude
and timing of the boost remain uncertain."
Also looming over markets was a threat by China
to slap a duty on U.S. oil imports in response to announcements by Washington
of new import sanctions on China, in what many analysts say could be a serious
trade stand-off between the world's biggest two economies.