Oil closes lower after Russia hints at possible hike in OPEC+ production

Oil drilling rigs

Oil edged lower today, May 7, in a volatile session after the Russian Deputy Prime Minister indicated that OPEC+ might move to increase crude production and despite the US Department of Energy request to purchase 3.3 million barrels to boost the strategic reserve.

Brent crude futures for July delivery fell by 0.2%, or 17 cents, to close at $83.16 per barrel, after rising during trading to $83.88.

WTI crude for June delivery fell by 0.15%, or 10 cents, at $78.38 per barrel, after touching $79.17 during trading.

Interfax quoted Russian Deputy Prime Minister Alexander Novak as saying that Moscow considers the current oil price to be completely normal and they adequately reflect the market situation, but he indicated that OPEC+ has the option of increasing oil production.

The Energy Information Administration said in its monthly short-term energy outlook report that it expects OPEC+ members to maintain voluntary production cuts after the second quarter, keeping the global market balanced in the second half of the year, and keeping oil prices near $90 per barrel in 2024.

The American Petroleum Institute's report on oil inventories is expected to be issued later today, and the US Energy Information Administration is scheduled to issue official data on stockpiles on May 8, amid expectations that crude inventories will fall by 1.3 million barrels.