NYMEX crude oil down in Asia as investors await OPEC views

Investing.com - Crude oil prices dipped in Asia on Friday as investors looked ahead to an OPEC meeting for any signals the group would find ways to accommodate more supply hitting the market from Iran and other nations and also kept an eye on Greece.

On the New York Mercantile Exchange, WTI crude for July delivery fell 0.07% to $57.96 a barrel.

Overnight, crude futures plunged on Thursday extending losses from one session earlier, as energy traders await Friday's critical OPEC meeting in Vienna for further indications on supply levels in the global markets.

On the Intercontinental Exchange (ICE), Brent crude for July delivery dipped $1.75 or 2.75% to $62.05 a barrel Thursday, closing below $64 a barrel for the second straight session.

OPEC meets on Friday in Austria and the world's largest oil cartel is widely expected to keep its production ceiling above 30 million barrels per day in spite of a continuing glut of oversupply in the market. Last month, OPEC pumped 31.58 million bpd, the highest level in four years.

Industry observers are likely to keep a close eye on any market-moving comments from Iraq and Iran, two Gulf nations expected to ramp up exports in the coming months. Bijan Namdar Zanganeh, Iran's oil minister told reporters this week in Vienna, that he expects his nation's exports to surge later this summer if economic sanctions are lifted by Western powers. Iranian exports could increase to 1.7 million bpd from a current level 1.0 million within 12 months of the easing of sanctions, according to Facts Global Energy an energy consulting firm. Iran reportedly has 30 million barrels of crude stored in offshore tankers ready for export.

Iraqi oil minister Abdel Abdul Mahdi, meanwhile, said earlier this week in Vienna that his nation will boost exports by roughly 100,000 bpd in June, up from a record level of 3.145 million bpd last month. Though Iraqi oil fields have come under siege in recent weeks by attacks from the Islamic State, Abdul Mahdi said its most productive areas have been spared.

Smaller OPEC nations such as Venezuela, Libya and Angola are expected to argue for production cuts in an effort to bolster prices. Angola, which derives nearly 98% of its revenues from oil, argued this week that $80 a barrel might be the right price for crude. Separately, Venezuelan oil minister Asdrubal Chavez said he has been working on establishing a technical group of leaders between OPEC and non-OPEC leaders to form a better consensus on issues dominating the market.

Much like the aforementioned African nations, Venezuela benefits from higher crude prices. The nations, though, are expected to be overruled by Saudi Arabia, which is looking to depress crude prices to force U.S. shale producers to curb output.

Greece delayed a key debt payment to the International Monetary Fund, while regionally investors looked ahead to indicators out of Japan.

On Friday as Prime Minister Alexis Tsipras, facing fury among his leftist supporters, demanded changes to tough terms from international creditors for aid to stave off bankruptcy.

The IMF said Athens had informed the global lender that it plans to bundle four payments due in June into a single €1.6 billion lump sum, which is now due on June 30.

"Under an Executive Board decision adopted in the late 1970s, country members can ask to bundle together multiple principal payments falling due in a calendar month," IMF spokesman Gerry Rice said in a statement.

It was the first time in five years of crisis that Greece has postponed a repayment on its €240 billion bailouts from euro zone governments and the IMF, and it came as German Chancellor Angela Merkel said talks on a cash-for-reforms deal were still far from reaching an agreement.

Investors were also looking ahead to Friday's nonfarm payrolls report for further indications on the strength of the U.S. job market.