"We have to analyse everything.in order to take a balanced decision in July" he said, referring to a key meeting of the so-called Opec+ alliance between Opec members and other oil producing countries including Russian Federation. Looks like everyone is focusing on the upcoming meeting of the Organization of Petroleum Exporting Countries (OPEC) which is due on 25-26 July.
While the talk of prolonged supply restraint is supporting prices, concern about slowing demand and economic growth has had a bigger impact on sentiment.
A surprise increase in USA crude stockpiles also kept oil prices under pressure.
Saudi Arabian Energy Minister Khalid al-Falih (L) and Russian Energy Minister Alexander Novak (R) exchange documents during the 6th meeting of the Russian-Saudi Intergovernmental Commission on Trade, Economic and Scientific and Technical Cooperation in Moscow on June 10, 2019. Conversely, we may see a dramatic sell-off in crude oil prices if cartel decides not to extend the output cut.
The energy minister of the United Arab Emirates, Suhail bin Mohammed al-Mazroui, said on Tuesday that OPEC members were close to reaching an agreement on continuing production cuts. "We are working to take preventative steps to avoid the scenario that was discussed", Falih said regarding the prospects of prices falling to $30 a barrel, in translated comments.
Despite this, MacPherson said "there is a limit to how much longer it (OPEC+) can continue to avoid addressing the serious challenge of being squeezed out by growing United States production".
China's crude oil imports slipped to around 40.23 million tonnes in May, from an all-time high of 43.73 million tonnes in April, customs data showed, due to a drop in Iranian imports caused by us sanctions and refinery maintenance.
The G-20 ministerial meeting on energy is scheduled for June 15-16 in Nagano, Japan, while the final leaders summit will take place on June 28-29 in Osaka.
Oil prices rebounded slightly at the end of the week on the news that OPEC+ will probably continue its output cuts throughout the year.
Brent crude futures, the worldwide benchmark for oil prices, fell $1.36, or 2.2%, to $60.93 a barrel by 11 a.m. EDT (1500 GMT).
"There's no doubt that the current situation on the global oil markets, which has begun to show volatility once again, makes Saudi-Russian cooperation more important", Al-Falih said Monday.
The minister also said Saudi Aramco had extended its offer to join Russian gas producer Novatek's Arctic LNG 2 project and that he hoped Novatek would agree to it, TASS news agency reported.