Oil Prices Fall amid Reports of Possible Increase in OPEC+ Production

Oil prices fell on Thursday as investors assessed a report that the OPEC+ alliance is discussing a production increase for July, raising concerns that global supply could outpace demand growth.

Brent crude futures fell 1.02% to $64.25 a barrel by the end of trading. U.S. West Texas Intermediate (WTI) crude fell 0.83% to $61.06 a barrel.

Latest Oil Prices: 

WTI Crude                    $60.77  -0.70%

Brent Crude                 $64.01  -0.67%

Murban Crude            $63.85  -1.25%

Louisiana Light           $65.43  -1.56%

Bonny Light                 $78.62  -2.84%

Mars US                       $72.21  -1.45%

Natural Gas                 $3.274  +0.65%

Gasoline                       $2.127 -0.22%

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, collectively known as OPEC+, are discussing the possibility of implementing another significant production increase at their meeting scheduled for June 1.

Among the options being considered is a 411,000 barrel per day increase for July, although a final agreement has not yet been reached.

Industry sources had reported that Kazakhstan's oil production rose 2 percent in May.

Reuters previously reported that the group plans to accelerate production increases, potentially restoring up to 2.2 million barrels per day by November.

This is part of a gradual process to end production cuts, with supply increases occurring during May and June.

Prices had already fallen earlier in the session after U.S. Energy Information Administration data on Wednesday showed a surprise build in crude oil and fuel inventories last week, with crude imports hitting a six-week high and demand for gasoline and diesel declining.

The Energy Information Administration said crude inventories rose by 1.3 million barrels to 443.2 million barrels in the week ending May 16, compared to analysts' expectations for a similar decline.