Oil prices dropped sharply amid reports that energy officials of major petroleum-producing nations were considering boosting supplies this year.
Saudi Arabian Energy Minister Khalid Al-Falih said OPEC and its allies could lift oil production in the second half, Bloomberg News reported May 25.
Russian Energy Minister Alexander Novak, who met with Al-Falih, said the output increase may begin in the third quarter, according to the report.
Brent crude was down 3.31% to $76.18 per barrel as of 5:49 p.m. in London, and U.S. West Texas Intermediate crude futures fell 4.31% to $67.66 per barrel at 12:48 p.m ET.
The energy ministers said the size of the supply increase is still under discussion. An unnamed source told Bloomberg News that oil producers were debating a boost of between 300,000 and 800,000 barrels per day, with Saudi Arabia and Gulf producers supporting the smaller increase and Russia favoring the larger figure.
Reuters separately reported, citing unnamed sources, that the two energy ministers and their counterpart from the United Arab Emirates discussed an output boost of about 1 million barrels per day.
Venezuelan President Nicolas Maduro also promised May 24 to increase production in the oil-rich nation this year by 1 million barrels per day, Reuters reported. He told the president of state oil producer Petroleos de Venezuela SA (PDVSA) to reach out to OPEC, Arab countries, China and Russia for potential help.
In 2017, OPEC members and non-OPEC producers led by Russia started reducing output to tighten the market and sustain prices. Al-Falih said easing of production caps would be smooth and gradual to prevent shocking the market.
"I think in the near future there will be time to release supply," Al-Falih said during a forum in Russia, as quoted by Bloomberg News. He also said "we will do what is necessary" to ease consumer anxiety when major oil producers meet in June.
