Growing concerns about increased crude production from Saudi Arabia and Russia later this year has weighed on oil prices.

The potential rise in production by one million barrels per day from the countries is to address supply concerns, declining global crude inventories and soaring consumer prices.

The impending US sanctions on Iran and political turmoil in Venezuela caused fears about supplies and it is in this backdrop that Saudi Arabia and Russia have opened talks regarding stepping up OPEC and non-OPEC oil production.

Brent crude declined by 45 cents, or 0.6%, to touch $74.94 a barrel, while US West Texas Intermediate (WTI) futures fell 24 cents, or 0.34%, trading at $66.49, Reuters reported.

French bank BNP Paribas commodity market strategy global head Harry Tchilinguirian was quoted by the news agency as saying: “OPEC has over-delivered on supply cuts in the past six months.

“OPEC has over-delivered on supply cuts in the past six months.”

“There is scope for an increase in OPEC output.”

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Global crude stockpiles have fallen due to continued OPEC-led output cuts.

Credit Suisse analysts stated that even with the potential increase in output from OPEC members and Russia, inventories in the industrialised nations would remain short of the five-year average by the end of this year.

Other factors contributing to the dip in oil prices are decreasing share prices and a stronger US dollar index.

Based on a preliminary Reuters poll, US crude inventories declined by 1.8 million barrels last week.