Crude prices were seen trading in the red territory on Monday amid speculations that OPEC members may cut supplies.
Prices for the North American West Texas Intermediate (WTI) crude traded 2.23% lower to $32.89 per barrel on the New York Mercantile Exchange at the time of writing. The European benchmark Brent crude lost 2.14% to $35.22 a barrel on the London-based ICE Futures Europe exchange.
Both crude benchmarks were seen trading slightly higher last week, boosted by predictions that OPEC members would cut their production by almost 5%. Last week, reports surfaced that Iran would not be a part of OPEC’s emergency meeting, however; the Persian Gulf said it would increase exports after sanctions against the country were lifted. Iran are expected to add approximately 400,000 barrels a day to the global production, according to forecast made by analysts.
Reports revealed that crude inventories in the US climbed by 8.38 million barrels to 494.92 million barrels in the week ending January 22, according to the Energy Information Administration. Crude production from OPEC (Organization of the Petroleum Exporting Countries) has climbed to 32.60 million barrels per day in January, as Iraq and Saudi Arabia increased their output.
Meanwhile, Baker Hughes released reports that showed that the number of oil rig counts dropped by 12 to a total of 498.