He said, "It's insane and astonishing to see instruction coming from Washington to Saudi to act and replace a shortfall of Iran's export due to their Illegal sanction on Iran and Venezuela", and he added that "No one in OPEC will act against two of its founder members; the US tried it last time against Iran, but oil prices got to $140 a barrel".
West Texas Intermediate for delivery next month declined US$0.21 to settle at US$65.74 per barrel on the New York Mercantile Exchange.
NEW YORK, June 8 (Reuters) - Oil prices fell on Friday as concerns about surging USA output and falling demand in China weighed on the contract and JP Morgan cut its price forecast.
According to the results of the previous week, which ended on June 1, the number of oil rigs in the USA increased by two, or by 0,2 percent - to 861 units.
Money managers cut bullish ICE Brent crude oil bets by 13,810 net-long positions to 438,186, weekly ICE Futures Europe data on futures and options showed.
The futures contracts dipped after the forecast was issued, and then pared losses.
Venezuelan state-run oil company PDVSA has completed its first ship-to-ship (STS) transfer created to ease a severe bottleneck of tankers around its main crude ports, according to sources close to the operation and Reuters vessel tracking data.
Surging U.S. production has capped gains in WTI prices, widening the grade's discount to Brent to more than $11 a barrel.
May shipments were 39.05 million tonnes, or 9.2 million barrels per day (bpd).
The surge in USA production has pulled down WTI into a discount versus Brent of more than $11 a barrel, its steepest since 2015.
Brent traded at $76.97 while WTI eased to $66.39 per barrel, as U.S. crude oil production rose to a record 10.8 million barrels per day.
Gold was little changed at US$1,302.70 per ounce, while silver declined 0.4 percent to US$16.74 per ounce and copper rose 0.8 percent to US$3.30 per pound, its highest price this year.
Reuters reports that the containers are waiting to load more than 24 million barrels of crude.
"This shift to OPEC actively contemplating relieving production cuts puts a pretty bearish spin on this market", said Rob Haworth, who helps oversee US$151 billion at US Bank Wealth Management in Seattle.
Among them are the political and economic instability in Venezuela and speculations that Saudi Arabia and Russian Federation are ready to exit the supply cuts agreed on by members and non-members of Organisation of Petroleum Exporting Countries (OPEC). The group meets in Vienna on June 22 to discuss its supply policy.
An economic crisis in Venezuela is curtailing the country's oil production, while a planned reinstatement of USA sanctions against Iran also is expected to impede production from OPEC's third-largest member.
"I think it is going to be very choppy", he said.
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