Oil prices fell on Thursday as investors cashed in on a recent rally ahead of a key producers meeting later in the day, with some speculation that Saudi Arabia may boost oil production in response to urging by the United States, Reuters reports.
Brent crude was down $2.07, or 1.8%, at $114.22 a barrel at 0649 GMT, having risen 0.6% the previous day.
U.S. West Texas Intermediate (WTI) crude dropped $2.21, or 1.9%, to $113.05 a barrel, after a 0.5% rise on Wednesday.
The benchmarks have marched higher for several weeks as Russian exports have been squeezed by EU and U.S. sanctions against Moscow over its invasion of Ukraine, actions that Russia calls a “special operation”.
“Investors unwound long positions to wait and see whether Saudi Arabia would raise production more quickly to respond to calls from the United States for it to do so, and whether the increase would affect the global supply-demand balance,” he said.
Saudi Arabia is prepared to raise its oil production if Russia’s output falls substantially because of the Western sanctions imposed on it, the Financial Times reported on Wednesday, citing sources.
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