Oil falls as investors prepare for an extra 1 million barrels per day of oil to hit markets. "But not all countries will be able to increase production, and S&P Global Platts Analytics expects a net realized output increase of around 700,000 b/d, largely met by Saudi Arabia".
Both natural gas and LPG could replace auto fuels as well as industrial fuel produced from crude oil, they said, adding renewable energy sources like solar and wind energy are not even being considered for arriving at the shrinkage in demand numbers.
The head of Saudi oil giant Aramco said it has spare capacity of 2 million bpd and can meet additional oil demand in case of any interruption in supplies.
OPEC and no-OPEC states have agreed to boost oil production by 1 million barrels at Vienna meeting.
Al-Falih also said leaders from other countries including India, China and South Korea had also expressed concerns to him that their economies were "starting to feel the pinch of higher oil prices".
Secretary-General of OPEC Muhammad Barkindo, has waved off reports that pressure by US President Donald Trump was instrumental to the Organization of Petroleum Exporting Countries (OPEC's) decision to increase oil production.
"Without the shale revolution in the U.S. bringing in now over five million barrels per day, the world would have faced probably one of the worst energy crisis".
Saudi Arabia and Russian Federation initially proposed raising output after curbs by OPEC and its allies since previous year helped eliminate a global glut and boosted Brent crude to US$80 a barrel for the first time since 2014.
Oil fell on Monday as investors prepared for an extra 1 million barrels per day (bpd) of oil to hit markets after OPEC agreed to raise production and as USA equity markets slipped on trade war fears.
SINGAPORE, June 26 ― Oil prices rose today on uncertainty over Libyan oil exports, although plans by producer cartel Opec to raise output continued to drag.
Losses in US crude prices were limited by the likelihood that an outage at Syncrude Canada's 360,000 barrel per day oil sands facility would last through July.
Iran said it doesn't believe buyers of its oil will get waivers from the United States government that would allow them to continue purchasing cargoes after President Donald Trump's renewal of sanctions. Once the OPEC supply comes into the market, the surplus in the market will grow, causing the oil prices to decline. Whether all this politicking will bring a stable reduction in global oil prices remains to be seen.