Oil prices eased slightly in trading but are still aiming for a sixth weekly gain after the OPEC+ meeting approved a modest increase in production, which failed to allay fears of a widening supply shortage. And OPEC+ agreed to increase oil production by 648,000 barrels per day in both July and August, a decision that came after the EU agreed to impose a partial ban on Russian oil imports.
According to Bloomberg, Warren Patterson, head of commodity strategy at ING Group, believes that the agreed increases appear large on paper, but in reality it is unlikely that the group will be able to meet these production targets, as Russian production is likely to decline in the coming months due to the impact of sanctions, while other members have limited spare capacity.
Brent crude for August delivery fell 0.35%, or 41 cents, to $117.20 a barrel at 09:05 Beirut time. U.S. oil futures for July delivery also fell 0.43%, or 50 cents, to $116.37 a barrel, pushing up 1.2% this week.
Source: El Iktisad
