Oil prices decreased on Thursday amid market disarray as supply uncertainties continue after OPEC+ countries failed to agree on their production quotas from August onward.
International benchmark Brent crude was trading at $73.11 per barrel at 0710 GMT for a 0.43% drop after closing Tuesday at $73.43 a barrel.
American benchmark West Texas Intermediate (WTI) was at $71.78 per barrel at the same time for a 0.58% decrease after it ended the previous session at $72.20 a barrel.
'OPEC+ did not provide a sense of direction. The market wants stability and sustainability, which did not come from this OPEC+ conference,' said Fereydoun Barkeshli, chairman of the Vienna Energy Research Group (VERG), speaking to Anadolu Agency on Tuesday.
The dispute among OPEC+ members occurred after the UAE objected to the group's plans to boost output by 400,000 barrels per day (bpd) from August to December. The group also wants to prolong the term of its production cut agreement, which was inked in October 2018, from April to December 2022.
Positive industry data that predicts a massive drop in the US crude oil inventories did not encourage lower prices.
The American Petroleum Institute predicted that US oil stocks would fall by 8 million barrels, compared to the market expectation of a drop of 3.9 million barrels.
The US International Energy Administration, which released its July Short-Term Energy Outlook (STEO) on Wednesday, expressed “uncertainties” over the path of global oil demand in the comings months but yet was optimistic that the recent increases in crude oil prices along with the OPEC+ decision to raise production would help meet the expected increase in global oil demand.
By Sibel Morrow