Oil falls 3% on uncertainty over future OPEC+ output, recession fears
* OPEC+ sticks to oil output policy, avoids debate on September
* Recession fears weigh on oil prices, Wall Street
* Some Norway oil workers to strike from July 5 (Updates prices, market activity)
By Stephanie Kelly
NEW YORK, June 30 (Reuters) - Oil prices sank around 3% on Thursday as OPEC+ confirmed it would only increase output in August as much as previously announced despite tight global supplies, but left the market wondering about future output.
Brent crude LCOc2 futures for September delivery fell $3.42, or 3%, to settle at $109.03 per barrel. The August LCOc1 contract, which expires on Thursday, fell $1.45, or 1.3%, to settle at $114.81 a barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $4.02, or 3.7%, to settle at $105.76 a barrel.
The OPEC+ group of producers, including Russia, on Thursday agreed to stick to its output strategy after two days of meetings. The producer club avoided discussing policy from September onwards.
Previously, OPEC+ decided to increase output each month by 648,000 barrels per day (bpd) in July and August.
Sanctions on Russian oil since Russia's invasion of Ukraine have helped send energy prices soaring, stoking inflation and recession fears.
Oil prices fell alongside Wall Street on Thursday. The S&P 500 was set up for its worst first six months since 1970, on concerns that central banks determined to tame inflation will hamper global economic growth.
Price declines in the oil market were exacerbated as U.S. traders squared positions ahead of the three-day Fourth of July holiday weekend.
"People are taking money off the table," said Phil Flynn, analyst at Price Futures Group in Chicago.
But further disruptions to supply could limit price declines amid a suspension of Libyan shipments from two eastern ports while Ecuador output fell because of ongoing protests.
In Norway, 74 offshore oil workers at Equinor's EQNR.OL Gudrun, Oseberg South and Oseberg East platforms will go on strike from July 5, the Lederne trade union said on Thursday, likely shutting about 4% of Norway's oil production.
Meanwhile Russian Deputy Prime Minister Alexander Novak said on Thursday that a possible import price cap imposed on Russian oil could push prices higher.
OPEC+ sticks to oil output policy, avoids debate on September
Reporting by Stephanie Kelly in New York; additional reporting by Noah Browning in London, Jeslyn Lerh in Singapore and Arathy Somasekhar in Houston; Editing by Lisa Shumaker, Alistair Bell and Deepa Babington
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.