Oil falls from $40 as doubts emerge over next step on OPEC cuts - Reuters

Oil falls from $40 as doubts emerge over next step on OPEC cuts - Reuters:

“Prices were firm so far this week on the news that the meeting was earlier,” said Olivier Jakob, oil analyst at Petromatrix. “The retracement today is definitely due to the latest headlines on OPEC.”

Brent crude futures for August were down 13 cents, or 0.3%, at $39.43 by 10:48 a.m. EST (1548 GMT). The session high of $40.53 was the highest since March 6. West Texas Intermediate (WTI) crude for July fell 3 cents, to $36.78. 


Both benchmarks have surged in recent weeks, with Brent more than doubling after hitting a 21-year low below $16 in April, when U.S. crude turned negative.

The OPEC+ group, comprising the Organization of the Petroleum Exporting Countries and allies including Russia, is cutting output by 9.7 million barrels per day (bpd) in May and June, equal to about 10% of global output before the coronavirus crisis.