Oil prices have decreased after OPEC production was raised. September Brent crude futures fell by seven cents to reach 74.90 dollars a barrel at 01:09 GMT after rising 68 cents, or 0.9 per cent, on Monday. US West Texas Intermediate (WTI) crude contract prices also fell six cents to reach 70.08 dollars a barrel, after rising more than two per cent in the previous session.
A Reuters survey showed that OPEC has increased production in July by 70,000 barrels per day to reach 32.64 million barrels per day; the highest level so far this year. Further increases in supplies would compensate for production disruption in some areas and absorb the impact of price pressures.
Traders said US crude gains on Monday stemmed from expectations that US crude stockpiles fell last week and fears that production disruption at Syncrude Canada’s oil sands facility would not be overcome as soon as expected. Oil prices rebounded from levels reached over the past two weeks as US sanctions threatened against Iran began to cut exports from Tehran.