Following concerns of possible crude oil supply shortfalls Into the market, high level talks is currently going on among key members of Organization of Petroleum Exporting Countries, OPEC, to agree on production hikes as the Organization meets in June.
Meanwhile, oil prices were mixed in early Asian trading on Tuesday, but remained under pressure from expectations that Saudi Arabia and Russia would pump more crude to ease a potential shortfall in supply.
Brent crude futures were up 57 cents, or 0.76 percent, at $75.87 a barrel after settling at their lowest since May 8 at $75.30, while the U.S. West Texas Intermediate (WTI) crude was down 80 cents, or 1.18 percent, at $67.08 a barrel. It finished the last session at its lowest closing price since April 17 at $66.47 per barrel.
“Investors have started pricing in the likelihood of Saudi Arabia and Russia increasing crude oil production,” ANZ Bank said in a note.
“However, doubt remains, with any agreement to be finalised at the June OPEC, meeting.”
Concerns that Saudi Arabia and Russia could boost output have put downward pressures on oil prices, along with rising oil production in the United States.
Saudi Arabia and Russia have discussed raising OPEC and non-OPEC oil production by some 1 million barrels per day to make up potential supply shortfalls from Venezuela and Iran.
The OPEC are due to meet in Vienna on June 22.
Meanwhile, record crude oil volumes from the United States would head to Asia in coming months, nibbling away the market share of OPEC and Russia.
U.S. oil production has surged by more than 27 percent in the last two years to 10.73 million barrels per day (bpd). That puts the United States ahead of top exporter Saudi Arabia, and only Russia pumps out more, at around 11 million bpd.