The price falls come after front-month Brent and WTI prices posted their strongest monthly gains in years in May. Gains were boosted by OPEC crude production dropping to its lowest in two decades with demand is expected to recover as more nations emerge from coronavirus lockdowns. “The focus is very much on OPEC+,” OCBC economist Howie Lee said, referring to the grouping of OPEC and its allies including Russia. “We might see a cautious pullback in (crude) prices given that downstream prices haven’t caught up ... but if OPEC+ does come up with a three-month extension, there’s a possibility that prices may hit the $40 level,” Lee said. Algeria, which currently holds the OPEC presidency, has proposed an OPEC+ meeting planned for June 9-10 be brought forward to facilitate oil sales for countries such as Saudi Arabia, Iraq and Kuwait.

Source: Dhaka Tribune June 01, 2020 02:03 UTC