Crude down on OPEC moves and inventories list
Crude oil prices were down Tuesday on news that the president of OPEC had said that several OPEC officials have proposed a rise of 500,000 barrels per day in production quotas, effective immediately.
That would put the quota at 28 million barrels per day if OPEC ministers approve it at their meetings in Vienna beginning on Wednesday. OPEC production, however, is already above that level.
In addition, Nigeria has proposed that decisions on future production hikes should be left to the OPEC president.
Another factor in falling prices was anticipation of the weekly US inventory figures.
Inventories of crude oil are expected to remain around current six year high levels, distillate stockpiles are expected to go up by 1.2 million barrels, and gasoline inventories are predicted to rise by 600,000 barrels.
At mid-day in New York, West Texas Intermediate for July delivery had fallen by 42 cents to $55.20 per barrel following a rise in price of $2.11 on Monday.
On the International Petroleum Exchange, Brent crude for July delivery was down 70 cents to $54.08 per barrel, while August contracts were down 57 cents to $55.20 per barrel.