Oil prices: Trump did not pressure us to increase production - Barkindo

Oil falls on OPEC's announced output rise, but markets to remain tight

They now have more room to respond to supply risks and moderate prices at a time when USA sanctions threaten to disrupt Iranian and Venezuelan exports. Saudi Arabia has also faced pressure from U.S. President Donald Trump who has criticized the group for keeping prices too high. Meanwhile, Iran, which has been opposed to raising OPEC output as it would lower prices, is set to suffer a marginal loss as it lacks spare capacity to ramp up production.

Brent crude futures fell $1.16 to $74.39 a barrel while USA light crude was up 16 cents at $68.74 a barrel, supported in part by a Canadian supply outage.

Almost everyone expected the OPEC+ decision to start raising oil production on Friday, with USA drivers excited to get some relief from high gas prices at the start of driving season.

Meanwhile, analysts surveyed Monday by S&P Global Platts were expecting United States crude stocks to have fallen 2.3 million barrels in the week ended June 22.

Investors feeling the jitters ahead of Turkish election
With 80 percent of votes counted in the presidential race, Erdogan had 54 percent, ahead of Ince on 30 percent, broadcasters said. Turkey will also be electing 600 lawmakers to parliament on Sunday - 50 more than in the previous assembly.

US West Texas Intermediate (WTI) crude futures were at US$68.26 a barrel, up 18 cents, or 0.26 per cent. Total volume traded was 37 percent above the 100-day average. He was seeking to reassure the market after several cartel members said the actual increase would only reach 700,000 because some nations are incapable of pumping more. The differing reaction narrowed Brent's premium to $5.81 from more than $10 last week. However, this week started with a dip in crude oil prices to around $74.25 per barrel, as traders factored in an expected 1 million barrels per day (bpd) output increase. Analysts see the deal as a compromise between Saudi Arabia which sought a production increase and the likes of Iran and Venezuela which did not.

Washington is pushing countries to halt imports of Iranian oil from November, a senior State Department official said, adding it will not grant waivers to sanctions. They now have more room to respond to supply risks and moderate prices at a time when U.S. sanctions threaten to disrupt Iranian and Venezuelan exports. That's a signal that exports from the Islamic Republic may fall much further, more quickly than expected.

"They have decided on 1 million barrels per day of more production, certainly that is a positive sign for consuming country like India", he said.

Even if output were increased aggressively, the group's announcement doesn't threaten "to create a large reversal in fundamentals", Goldman said.

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