Oil prices struggled for a second consecutive day after Russian officials announced that they may increase production in an effort to compete for more market share. Oil prices have risen significantly in recent weeks and have soared more than 30 percent since the start of the year. OPEC’s production cuts in conjunction with its partner, Russia, have previously decreased the country’s market share even as prices climbed. Brent crude futures were down 0.28 percent as of 12:26 p.m. HK/SIN to $70.98 per barrel after closing down 0.5 percent on Monday. U.S. WTI futures were down 0.16 percent to $63.30 per barrel. OPEC and its allies will meet in June to determine whether the production cuts should continue or end. According to reports by CNBC, Saudi Arabia is interested in keeping the production cuts stable, but it is currently facing pushback from other members of OPEC.
The price declines on Monday were limited by decreased production in Iran and Venezuela as well as hints that the U.S. will tighten its sanctions on those two countries. Political unrest in Libya has also kept prices from sinking steeply. On the other hand, continuing production increases in the U.S. have put the pressure on oil prices and have given the U.S. a bigger market share than other producers would like.
Stock Trade Higher
Asian stock indexes were mixed in the early morning on Tuesday, confused in part by a statement from U.S. President Donald Trump who said late on Monday that the United States would ‘win’ whether a deal was made with China or not. However, by the early afternoon all major indexes were trading higher, with China’s Shanghai Index gaining 1.11 percent, the biggest advance on the day. Japan’s Nikkei 225 was up 0.24 percent, the Shenzhen Composire was up 0.54 percent, and South Korea’s Kospi was up 0.02 percent, a modest gain that kept the trend in tact.