2018.05.3002:08:00UTC+00Oil prices Slide Amid Concerns Saudi Arabia, Russia Could Boost Supply

Oil prices edged down on Wednesday amid worries that Saudi Arabia and Russia will produce more crude in the second half of 2018 in response to declining global crude stockpiles and increasing consumer prices.

The two top producers have discussed lifting OPEC and non-OPEC oil production by 1 million barrels per day to offset possible supply shortfalls from Venezuela and Iran.

Brent crude futures traded down 45 cent or 0.6 percent at $74.94 per barrel after closing 9 cents higher on Tuesday. U.S. WTI crude fell 24 cents or 0.34 percent at $66.49 per barrel. It had finished down $1.15.

OPEC-led production cuts have mostly eliminated an inventory surplus in industrialized nations and inventories continue to dwindle. The Organization of the Petroleum Exporting Countries is scheduled to meet in Vienna on June 22.

According to Credit Suisse analysts, even if Russia and OPEC producers increased production, they would likely add an additional 500, 000 bpd which would leave stockpiles in the most developed nations short of the five-year average by the end of 2018.

Declining share prices and a stronger U.S. dollar index also affected oil prices. U.S. stock markets declined over 1 percent while the dollar wavered at a 10-month high versus the euro. A stronger dollar makes greenback-denominated commodities such as oil more costly for holders of other currencies.

U.S. oil received some support as U.S. crude stockpiles likely declined by 1.8 million barrels in the previous week, according to a poll by Reuters.

Industry group API will publish its weekly oil data later in the day, succeeded by the report by U.S. EIA on Thursday.