Oil prices fall amid Saudi, Russia talks on output increase

Crude oil prices declined on Monday amid wider expectations that OPEC and its allies will agree to ease supply curbs during their meeting in Vienna later this this week.

Brent crude was last trading down 0.9 percent at $72.75 per barrel (bbl), while US West Texas Intermediate (WTI) crude futures were at $63.83/bbl – down nearly 2 percent from the last closing.

There appears to be consensus that OPEC and non-OPEC production will be increased “gradually,” something Saudi Arabia’s Energy Minister Al-Falih described as “inevitable,” Germany-based Commerzebank said in a recent report.

“It is still unclear what is meant by gradually,” it added.

Last week, Saudi Arabia was said to be considering an increase between 500,000 and 1 million barrels per day. Russia, meanwhile, has expressed wishes to raise output by 1.5 million barrels per day.

On the other hand, Iran and Venezuela are not likely to support an increase in production, the report added.