Oil prices fall as supply from top three producers set to rise

ALGERIA-OPEC-OIL

Operating profit as measured by earnings before interest, taxes, depreciation and amortisation rose by 5.7% year on year, with a stronger rouble partially offsetting the gains due to higher prices.

Saudi Arabia's signal to ease limits on Crude Oil production led to prices falling Friday after a 3-week rally, and OPEC cited an angry Tweet by President Donald Trump as the trigger.

US West Texas Intermediate (WTI) crude futures were at $66.74 a barrel, down 1.7 percent. "I think in the near future there will be time to release supply", Al-Falih said.

Mizuho sees a 10 percent chance that the summit, so far planned on June 12, will not take place, a 20 percent chance of a deal leading to a peace treaty struck at the meeting and a 70 percent likelihood of the summit leading to more talks without producing immediate deals on denuclearisation, he said.

While Russia and OPEC benefit from higher oil prices, up nearly 20% since the end of previous year, their voluntary output cuts have opened the door to other producers to ramp up production and gain market share.

"The impression of easing output cuts on its own is sufficient to put a cap on [oil] prices", said Hussein Sayed, chief market strategist at FXTM.

The cost of oil is also facilitated by data on the dynamics of the number of drilling rigs in the United States.

API, EIA, US oil rig count next of relevance later in the week. The global sulfur limit on fuel oil will be set at 0.50 percent m/m (mass/mass) in 2020, a significant cut from the 3.5 percent m/m global limit now in place.

The drop in oil prices is welcome news for drivers, as well as companies and countries that buy a lot of energy. While the crude oil prices were low, the government repeatedly levied cess on fuel to fund its infrastructure and other development programs while keeping the annual budget deficit in check. Experts generally consider this price level to be high enough to sustain supply and low enough to sustain demand. In addition, Saudi Arabia and Russian Federation appear dissatisfied with the growth of production in the United States and the fact that they are actively trying to expand their market share.

Those efforts paid off, with prices rising to as much as $80 a barrel, or approximately $3 a gallon in the US -a 25% increase from previous year and the highest since 2014.

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