Oil prices mixed amid Russian production output rise, strong demand in Asia

Oil prices were mixed Monday amid rising Russian production and strong demand in Asia.

Crude Oil WTI Futures for July delivery were trading at $65.7 a barrel at 04:02 GMT, down 0.11 percent. Brent Oil Futures for August delivery, traded in London, were up 0.05 percent at $76.50 per barrel.

Shanghai Crude Oil WTI Futures for September delivery were up 0.1 percent at 470.80 yuan per barrel on Monday.

Russia’s oil production rose to 11.1 million bpd in early June, up from slightly below 11 million bpd in most of May, Russian news agency Interfax reported over the weekend.

Prices were also pressured by another jump in the number of rigs drilling for new oil production in the United States, which suggested U.S. crude oil output would rise further.

“Non-OPEC supply is expected to rise sharply in 2019 led by US shale growth along with Russia, Brazil, Canada and Kazakhstan,” said JPMorgan in its quarterly outlook report, adding that it was bearish for the oil markets in the second half of the year.

“oil fundamentals are expected to weaken in 2019 on the back of stronger than expected non-OPEC supply but also the potential release of barrels from OPEC as the joint accord between OPEC and non-OPEC is unlikely to stay in place,” the U.S. bank added.

Meanwhile, India’s May fuel demand rose 3.4 percent year-on-year, data from the Petroleum Planning and Analysis Cell (PPAC) of the oil ministry showed on Monday.

Sentiment on oil prices remained mostly negative, as investors continued to fear OPEC, at its meeting on June 22, could ease production curbs to offset falling supplies in Venezuela and an expected drop in Iran oil exports as U.S. sanctions loom.

OPEC-member Iraq said last week that a production increase was not on the table as the market was stable and prices were good, despite reports that the U.S. government had asked Saudi Arabia and other OPEC members to increase oil output by around 1 million.