Oil prices drop as OPEC, Russia set to increase production

Oil prices drop as OPEC, Russia set to increase production

Oil prices plunged on Friday as reports said OPEC and Russia are considering lifting production by as much as 1 million barrels a day to meet the shortfall in supply from Iran and Venezuela.

OPEC and a group of non-OPEC countries led by Russia have since January 2017 cut production in an effort to tackle the global supply glut that had pulled prices to multi-year lows. The global inventories are now close to OPEC’s target, helping lift prices to three-year highs in recent weeks.

The plans to now lift production again come amid worries that Iran’s exports will decline after the U.S.’s decision to pull out of the nuclear deal with Tehran and as output has collapsed in Venezuela, Per Second News gathered Friday morning in Washington.

West Texas Intermediate crude oil for July CLN8,-3.00% slumped $1.33, or 1.9%, to $69.38 a barrel, setting the contract on track for a 2.7% weekly slide.

Brent oil — the international benchmark LCON8, -2.51%  — lost $1.69, or 2.1%, to $77.10 a barrel.

The losses came after media reports hit saying the Organization of the Petroleum Exporting Countries and Russia are discussing plans to lift their production for the first time since 2016.