2018.05.2902:52:00UTC+00Oil Prices Mixed, Expected Production Boost Weighs on Market

Oil prices were mixed in Asian trading, but continued to be pressured by expectations that Saudi Arabia and Russia would increase production to ease a possible shortfall in supply.

Brent crude oil futures traded up 31 cents or 0.41 percent at $75.61 per barrel after closing at their lowest level since May 8 at $75.30. U.S. WTI crude traded down $1.05 or 1.55 percent at $66.83 per barrel, near its lowest level since April 17.

The spread between Brent and WTI is now at around $8.7 per barrel, the widest since March 2015 due to the low price of U.S. crude compared to the international benchmark.

ANZ said in a note that investors are beginning to price in the possibility of Saudi Arabia and Russia boosting crude oil production. It added that doubt remains as no deal have yet to be finalized at the June OPEC meeting.

Worries that Saudi Arabia and Russia could bolster production have weighed down oil prices, along with increasing oil production in the U.S.

Saudi Arabia, OPEC's de-facto leader, and Russia, one of the top producers in the world, have discussed increasing OPEC and non-OPEC oil production by around 1 million barrels per day in order to fill in the potential supply shortfalls from Venezuela and Iran. The OPEC is slated to meet in Vienna on June 22.

Meanwhile, record crude oil volumes from the U.S. are expected to be imported to Asia in coming months, eating into the market share of OPEC and Russia. U.S. oil production has jumped by over 27 percent in the last two years to 10.73 million bpd.