The price of Brent crude has slipped below $64 per barrel on signs of surging crude supplies from OPEC members, which negated the indications of a slowdown in US output, and conflict in the Middle East.
The price of Brent crude for June LCOc1 dropped 75 cents to $63.23 per barrel, while US crude for May CLc1 fell 82 cents to $55.89 per barrel, reported Reuters.
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The Organization of the Petroleum Exporting Countries (OPEC) in its monthly report said that its March production grew 810,000 barrels per day (bpd) to reach 30.79 million bpd.
Recently, the International Energy Agency also reported a surge in OPEC production to 31 million bpd, which might postpone the tightening of the global oil market.
PVM David Hufton was quoted by the news agency as saying: "There is the prospect in the second quarter of an enormous 2.4 million to 2.7 million bpd stockbuild if OPEC production continues at 31 million bpd."
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"Could it be that Saudi Arabia wants to frighten non-OPEC producers such as Russia to the production negotiation table?"
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By GlobalDataNegotiations between OPEC and other major oil producers prompted a rumour about deals to reduce production to support oil prices, even though according to most analysts, an agreement was not likely.
Since June, oil prices have fallem by almost 50% due to ample oil supplies. The prices dropped further after OPEC declined to reduce production in November.
