Oil falls as Saudis signal supply boost

Saudi oil minister said that a gradual oil output increase could happen in the second half of the year

NEW YORK: Global oil prices fell after top producer Saudi Arabia signalled a likely boost in supply as soon as the start of third quarter, and world stock markets were mixed over the sudden US move to cancel the summit with North Korea. Saudi oil minister Khaled al-Faleh said at an economic conference in Russia that a gradual output increase could happen in the second half of the year to prevent any supply shocks, according to the RIA Novosti agency.

Benchmark crude prices tumbled almost $3 per barrel in London and fell more than $2 in New York. Oil stocks were likewise hammered as a result, with US supermajor Chevron falling 3.5%. Russia’s oil tsar Alexander Novak said ministers from OPEC and other members of the production pact would discuss how much to increase production next month. The lacklustre finish in New York came amid light trading volume ahead of a three-day holiday weekend, the traditional start of the US summer when many market players are on vacation.  

Published in The Express Tribune, May 27^th, 2018.

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