Crude oil declined for a third consecutive day amidst speculation that OPEC shall raise its output quota. WTI crude futures fell by 0.53 percent to USD $ 98.490 a barrel. Brent crude futures fell by 0.45 percent to USD $ 113.96 a barrel.
The current high level of oil price has increased the idea that OPEC may increase its production output quotas, since individual OPEC members have expressed their concerns at different instances over a high oil price eroding the global demand of oil. Also, the International Energy Agency (IEA) has stated that it foresees an urgent increase in oil supply in order to bolster the demand of oil. OPEC members are scheduled to meet tomorrow in Vienna to discuss their current production levels. If OPEC decides not to alter its production quotas, then, it would send out a signal in the market that the current level of oil price is acceptable to them.
A report released tomorrow is expected to show that the level of crude stockpiles in the US has risen by 1 million barrels last week, a sign of a weak demand. Furthermore, the US economy is not putting up a healthy performance, with unemployment rising to 9.1 percent in May. This pessimistic outlook of the US economy also caused a drop in oil futures.