Brent prices have increased but continue to experience downward pressure from rising US production and expectations that Saudi Arabia and Russia would step up output to address concerns of a potential shortfall in supply.
Asian trading witnessed mixed oil prices, with US West Texas Intermediate (WTI) declining since their last close, according to Reuters.
Brent crude futures jumped 21 cents, or 0.28%, to trade at $75.51 per barrel, while US WTI crude futures dipped $1.11, or 1.64%, to reach $66.77, staying close to its lowest level since 17 April this year.
ANZ Bank was quoted by the news agency as saying: “Investors have started pricing in the likelihood of Saudi Arabia and Russia increasing crude oil production.
“However, doubt remains, with any agreement to be finalised at the June OPEC meeting.”
In the wake of potential supply shortfalls from Venezuela and Iran, Saudi Arabia and Russia held negotiations on possibilities of increasing Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil output by around one million barrels a day.
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Analysts are looking forward to the OPEC meeting in Vienna on 22 June.
The depressed price of US crude compared to Brent has resulted in the wide gap of around $8.7 a barrel between the futures.
NH Investment & Securities commodity analyst Vincent Hwang said: “The way I see it is that WTI prices are stabilising rather than falling after rising sharply in recent weeks because the prices were expected to be in the range of $55-$65 a barrel.
“But at the same time there are some worries over a fall in US oil demand if more Middle East crude supplies flow into the market.”
Meanwhile, the US production, currently at 10.73 million barrels per day, continues to surge.