Oil prices slump after talk of curbing oil supplies

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Countries such as USA, Canada and Brazil, which are not in the OPEC/non-OPEC alliance have also taken advantage of the increased oil prices to ramp up‎ production.

The JTC meeting precedes the producers' main gathering next month in Vienna, where they will evaluate the results of output cuts they've been making since January 2017.

"I think I was prodded by his excellency Khalid Al-Falih that probably there was a need for us to respond".

The Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russian Federation began withholding 1.8 million barrels per day (bpd) of supplies in 2017 to tighten the market and prop up prices that in 2016 fell to their lowest in more than a decade at less than $30 a barrel.

Global crude inventories have fallen over the past year because of the OPEC-led cuts, which were boosted by a dramatic drop in Venezuelan production.

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Brent was on track to fall about 3.1 per cent this week, which would be its largest weekly percentage loss since early April.

Another factor that is affecting oil output, and prices, is the domestic production in the United States, where output from shale has hit record levels.

After WTI Crude rising above 70 bbl, a 4-year high, prices dropped 4% Friday to 67.88 bbl on the New York Merc after Saudi Arabia and Russia's near agreement through OPEC to open up supply in 2-H of this year.

Falih said that "all options are on the table" regarding targets for output cuts. Terminating the deal would increase output by about 1.3 million bpd.

OPEC and its allies are scheduled to meet June 22 to discuss, among other things, the supply reduction put in place that has pulled since a year ago about 1.8 million b/d total from the market. "In my view, from $5/b to $7/b in oil price today are risks associated with the situation in Iran", Novak said in an interview with the Echo Moskvy radio station.

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South Korea's purchases are driven by its top refiners SK Energy and GS Caltex.

He said he will meet with OPEC ministers in June to discussion a production increase, which he said was likely and - just like earlier production cuts - should be "proportionate, for the sake of fairness" so that all producers can benefit from the increase.

The final production number is not set yet as dividing up the extra barrels among deal participants could be tricky, the sources said. The next OPEC meeting is June 22.

The Organisation of the Petroleum Exporting Countries (OPEC) and a group of non-OPEC producers led by Russian Federation started withholding output in 2017 to tighten the market and prop up prices.

Prices have moved higher not only because of OPEC and its allies' pullback, but also from threatened USA sanctions on OPEC member Iran, which has been exporting as much 1 million b/d, along with the energy industry collapse for OPEC member Venezuela, which also has cut into global supply.

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