Oil falls on fears Opec increases output due to lower supply from Iran and Venezuela
London — Oil fell on Wednesday, under pressure from a potential increase in oil cartel Opec crude output to cool the market’s recent rally and cover any shortfalls in supply from Iran and Venezuela. Brent crude futures were down 75c at $78.82 a barrel by 9.40 GMT, while US crude fell 46c to $71.74 a barrel. Oil prices have gained nearly 20% so far this year, with Brent briefly rising above $80, driven primarily by co-ordinated supply cuts by Opec and partners, including Russia. The price has also been affected by rising geopolitical tensions that could dent global output, just as demand is set to hit 100-million barrels per day (bpd) in the final quarter of this year, according to the International Energy Agency (IEA). In addition, the US plans to re-impose sanctions on major oil producer Iran, while an economic crisis has decimated Venezuela’s crude output. Based on the prospect of a shortfall in supply relative to demand, investors had driven their bets on a sustained rise in the ...
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