Oil prices rise ahead of OPEC’s June 22 meeting

Iran may accept OPEC oil production increase with conditions

Crude oil prices remained relatively stable after the Energy Information Administration reported a draw of 5.9 million barrels in USA crude oil inventories for the week to June 15.

Refineries' crude runs rose to 17.7 million barrels per day, the highest on record for this time of year, the EIA data showed.

Oil catches some much-needed lift on United States crude stocks declines.

"However, the big decline in crude was nearly exactly offset by a combined gasoline (and) distillate build of roughly six million barrels".

Crude oil prices have risen 60% in a year to about $75 a barrel due to a combination of factors including healthy demand, supply cut by key producing countries, including members of OPEC and Russian Federation, a sharp drop in Venezuela's output and United States decision to sanction Iran. WTI futures for August CLc2 rose 65 cents to $65.55.

Brent crude futures for August delivery fell 34 cents, or 0.5 per cent, to end at $74.74 a barrel.

Traders said a drop in Libyan supplies, including the loss of a 400,000-barrel storage tank, also helped support prices. He said now high oil prices dent the economic development of many countries.

An attack by armed factions opposed to Khalifa Haftar's Libyan National Army (LNA) has forced the closure of the two ports since June 14 and the declaration of force majeure on exports.

It's anyone's guess what individual OPEC members will decide to do if the meeting ends without an agreement, but in all likelihood those that can produce more will do so, if only to keep their market share in the face of rising USA and other non-OPEC supply. "My fear is - this will lead to energy poverty in many parts of the world", he said.

"Any developments on OPEC can move us", said Phil Flynn, analyst at Price Futures Group in Chicago. "We expect from OPEC and its members a commitment to step in (and) more than fill the gap to ensure sustainable prices", Indian oil minister Dharmendra Pradhan said at a seminar in Vienna.

"Saudi Arabia and Russian Federation continued to push for a relaxation in production constraints, going against many other members wishes", ANZ bank said on Wednesday.

"Iran rejected a potential compromise, saying it won't support even a small increase in oil production".

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