Gasoline Sinks, Following Crude, as Saudi Arabia to Raise Output - Bloomberg

Gasoline slipped, following crude oil lower, after a report that Saudi Arabia will boost July output following a meeting June 8 in Vienna at which OPEC ministers failed to reach consensus on production quotas.

Futures declined as the Al-Hayat newspaper reported that Saudi Arabia will raise production targets to 10 million barrels a day. The Organization of Petroleum Exporting Countries has not increased output quotas since 2007.

“That’s a very bearish thing,” said Dominick Chirichella, senior partner at the Energy Management Institute in New York. “The Saudis are saying to OPEC they can afford to have lower oil prices. They’re the only ones that have the capability to bring the market down.”