The price for Brent crude oil was down 1.16 percent as of $74.42 per barrel as of 9:15 a.m. EDT. U.S. West Texas Intermediate (WTI) crude futures recovered some earlier losses to trade 25 cents lower at $65.71. The United States is the second largest producer of crude oil and higher prices have now become more important to the USA economy then lower prices.
OPEC-14 crude oil production fell year-on-year by 926,000 barrels per day (b/d), or 2.8 per cent, while crude production in non-OPEC countries registered gains, OPEC said in its 53rd edition of the Annual Statistical Bulletin (ASB).
It's not clear how the USA request has been conveyed, and the White House declined to comment on conversations.
Oil prices could jump to $140 a barrel due to the USA sanctions against Iran and Venezuela, Iran's OPEC governor Hossein Kazempour Ardebili told Reuters on Friday. Significant volumes of crude oil were also exported to Europe, which increased its imports from OPEC member countries from 4.40 mb/d in 2016 to 4.64 mb/d in 2017.
The U.S. government has quietly asked Saudi Arabia and some other OPEC producers to increase oil production by about 1 million barrels a day, according to people familiar with the matter. With record amounts of Oil all over the place, including the fully loaded ships at sea, Oil prices are artificially Very High!
On Friday, OPEC's third-largest producer Iran criticized a USA request that Saudi Arabia pump more oil to cover a drop in Iranian exports and predicted that OPEC would not heed the appeal. As speculation swirls over whether Opec and its allies will relax the caps at a meeting in Vienna later this month, Goldman Sachs Group Inc is still bullish on oil as it says stockpiles will continue to diminish this year.
US crude output hit a record of 10.8 million barrels a day in the week, according to the EIA's weekly report.
"At the moment, the oil price is being driven by OPEC and views on how much and how quickly "OPEC plus" will raise output", Energy Aspects analyst Virendra Chauhan said.
OPEC will meet on June 22 and needs a consensus of all members to officially change its output policy.
A day before U.S. President Donald Trump pulled the United States out of the Iran nuclear deal, a senior official of the Trump Administration phoned Saudi Arabia to ask it to help keep oil prices stable should the U.S. decision on Iran disrupt oil supply, Reuters reported yesterday.