https://www.reuters.com/markets/commodities/oil-prices-skid-3-barrel-investors-take-profits-ahead-opec-meeting-2022-06-02/
Oil prices skid $3 a barrel as investors take profits ahead of OPEC+ meeting
By
Yuka Obayashi - OPEC+ to stick to output hike plan despite EU sanctions -sources
- OPEC experts didn't discuss suspending Russia from quotas
- Russian Foreign Minister Lavrov visits Saudi Arabia
TOKYO, June 2 (Reuters) - Oil prices fell by around $3 a barrel in early Asian trade on Thursday as investors cashed in on a recent rally with a key producers meeting later in the day set to pave the way for expected output increases.
Brent crude was down $2.76, or 2.4%, at $113.53 a barrel at 0024 GMT, having risen 0.6% the previous day.
U.S. West Texas Intermediate (WTI) crude dropped $2.89, or 2.9%, to $112.37 a barrel, after a 0.5% rise on Wednesday.
The benchmarks have marched higher for several weeks as Russian exports are being squeezed by EU and U.S. sanctions against Moscow over its invasion of Ukraine, actions that Russia calls a "special operation".
While China's gradual emergence from strict COVID-19 lockdowns has added to price support, a stronger U.S. dollar also dented oil prices on Thursday as it makes crude more expensive for those holding other currencies.
"Investors took profits ahead of the OPEC+ meeting and on the higher dollar," said Kazuhiko Saito, chief analyst at Fujitomi Securities Co Ltd, referring to a grouping of the Organization of the Petroleum Exporting Countries (OPEC) and associated allied producers, including Russia.
"We expect no surprise from OPEC+ as the group is unlikely to change their policy when Russian Foreign Minister Sergei Lavrov is visiting Saudi Arabia," he said.