Oil prices fall on concerns supply to rise as producers wrangle on cuts

  • Date: 04-Jun-2020
  • Source: Reuters
  • Sector:Economy
  • Country:Middle East
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Oil prices fall on concerns supply to rise as producers wrangle on cuts

MELBOURNE (Reuters) - Oil prices fell on Thursday, reversing gains in the previous session, on concerns that supply will rise if major producers are unable to agree to extend the depth of output cuts that have supported recent gains.. Saudi Arabia and Russia, two of the world's biggest oil producers, have agreed to support extending into July the 9.7 million barrels per day (bpd) in supply cuts backed in April by the OPEC+ group, comprised of the Organization of the Petroleum Exporting Countries and other major producers.. The amount of distillate fuel, including diesel used for shipping goods by train and tractor trailer, supplied to retailers fell by 548,000 bpd to 2.718 million bpd, the lowest weekly reading since 1992.. It just reinforces that we've had this initial (price) recovery driven by supply side discipline," Shaw said..