The oil price is steady to a little lower so far this week, amid numerous developments, including a survey from news agency Reuters that OPEC oil output hit a record high for 2018, in July.
And, although India is the latest country to reduce its supply levels from Iran, overall, investors are anticipating a generally higher global supply of the valuable commodity.
The price of Brent crude was around 0.5% lower at $75.17 per barrel Tuesday. Meanwhile, US WTO crude was around 0.57% lower at $69.73 per barrel.
Traders await the weekly US inventory figures due out later Wednesday.
OPEC output increase
A Reuters survey has calculated that output from OPEC members rose to around 32.64 million barrels per day in July. That’s an 70,000 bpd increase from the June level and the highest so far, this this year.
The increase in supply from the group comes as the Congo has joined. However, the upside was limited by lower output levels from Iran and Libya.
The rise in supply from OPEC members comes as the group and its allies agreed to increase output. It also follows comments from US President Donald Trump for suppliers to boost their output as Iran oil sanctions are set to kick in.
India reduces Iranian oil orders
Ahead of those US sanctions on Iranian oil later this year, India said Monday it had ordered less oil from Iran in June than in May, as it prepares to adhere to those sanctions requiring that no country buys oil from the country.
India is Iran’s second largest market and although India reduced its orders in June 2018 the amount it imported - 2.82 million tonnes – was still higher than the 1.9 million tonnes it imported from Iran in June 2017.
India is reportedly keen on adhering to the US sanctions on Iranian oil imports amid fears that the US could limit its access to the US financial system as punishment.