Oil Falls as Russia Is Said to Seek Full Rollback of OPEC+ Cuts

Oil slipped after Russia was said to propose that OPEC and other producers in a global alliance reverse the supply cuts they’ve been making since early last year.

Futures in New York dropped as much as 1.3 percent after Russia, which has already started increasing output, was said to suggest that OPEC and its allies be allowed to return production to October 2016 levels within three months, although not all nations would be able to do so. The International Energy Agency said Saudi Arabia and other Gulf producers may need to boost supply to offset potential losses of 1.5 million barrels a day from Venezuela and Iran by next year.

Oil has retreated from the highs of May as Saudi Arabia and Russia signaled they may increase output later this year to counter supply losses from other producers, while U.S. President Donald Trump is also pressuring them to temper crude prices. Investors are looking for signs of whether OPEC will reach a consensus on boosting production, with the group set for a fractious meeting in Vienna next week. On Tuesday, OPEC emphasized the deep uncertainty over the strength of demand later this year.

“While some members appear to be against the idea, we believe that we will see a gradual lifting of cuts,” said Warren Patterson, a commodities strategist at ING Bank NV in Amsterdam.

West Texas Intermediate crude for July delivery dropped as much as 84 cents to $65.52 a barrel on the New York Mercantile Exchange and traded at $66.22 as of 11:07 a.m. London time. The contract climbed 26 cents to $66.36 on Tuesday. Total volume traded Wednesday was about 22 percent below the 100-day average.

Brent futures for August settlement declined as much as 62 cents to $75.26 on the London-based ICE Futures Europe exchange, after sliding 0.8 percent on Tuesday. The global benchmark crude traded at a $9.51 premium to WTI for the same month.

Futures on the Shanghai International Energy Exchange dropped 1.6 percent to 464.5 yuan a barrel in afternoon trading. The contract increased 1 percent on Tuesday.

Ending Curbs

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