Oil prices fall as investors await OPEC+ policy, eye Saudis

Oil prices fall as investors await OPEC+ policy, eye Saudis

U.S. West Texas Intermediate (WTI) crude dropped $2.21, or 1.9%, to $113.05 a barrel, after a 0.5% rise on Wednesday.

The benchmarks have marched higher for several weeks as Russian exports have been squeezed by EU and U.S. sanctions against Moscow over its invasion of Ukraine, actions that Russia calls a "special operation".

While China's gradual emergence from strict COVID-19 lockdowns has helped support prices, speculation that Saudi Arabia may step up production weighed on the market, said Tsuyoshi Ueno, senior economist at NLI Research Institute.

"Investors unwound long positions to wait and see whether Saudi Arabia would raise production more quickly to respond to calls from the United States for it to do so, and whether the increase would affect the global supply-demand balance," he said.

Saudi Arabia is prepared to raise its oil production if Russia's output falls substantially because of the Western sanctions imposed on it, the Financial Times reported on Wednesday, citing sources.

Production increases scheduled for September would be brought forward to July and August, the paper said.

Still, others expect OPEC+ - a grouping of the Organization of the Petroleum Exporting Countries (OPEC) and associated allied producers, including Russia - will keep its production policy unchanged.

Five OPEC+ sources said on