2020.06.0410:20:00UTC+00Oil Prices Fall On Uncertainty Over OPEC Cuts

Oil prices fell sharply on Thursday as doubts emerged over next step on output cuts and a report showed U.S. refined product inventories surged in the latest week, raising concerns about demand.

Benchmark Brent crude fell 1.2 percent to $39.22 a barrel, heading for its first fall in six sessions. U.S. West Texas Intermediate (WTI) crude futures were down 1.8 percent at $36.62.

Earlier, there were expectations that OPEC and allies will hold an early meeting on June 4 as against scheduled meeting for June 9-10.

The OPEC+ meeting was still possible this week, if Iraq and other non-complying members promised to deepen their production cuts, Reuters reported citing unnamed OPEC sources.

Uncertainty surrounding the timing of the meeting raised doubts about a willingness to substantially extend global production cuts that taper after June.

Media reports suggested that Saudi Arabia, Kuwait and the United Arab Emirates are not planning to extend voluntary additional output cuts of 1.18 million bpd after June.

Worries over a build in U.S. fuel inventories also weighed on the commodity.

Data released by Energy Information Administration late Wednesday showed that gasoline stocks rose by 2.8 million barrels in the week ended May 29, nearly triple what analysts had expected. Distillate stocks rose by 9.9 million barrels, nearly four times more than expected.