Crude Oil Prices Continue To Face Loss
By Daisy Joseph
The oil producing countries are hopeful to extend the OPEC deal to continue with production cuts.
Despite the efforts taken by the OPEC to curb oil production in order to support oil prices, the price of crude oil isn’t raising steadily. The oil prices continue to face a loss and for the seventh consecutive day, the oil prices fell. The price of crude oil has reached its lowest in a month. The increased oil production in the US has not helped to reduce the overall supply in the market. The oil producing countries are hopeful to extend the OPEC deal to continue with production cuts.
The API inventory flow data will be released soon and the market is pinning its hopes on the inventory data. The EIA figures are expected to be in the range of 1.6 million barrels drawdown. If the outflow is much lesser than this speculated value oil prices will continue to drop. On the other hand, with a larger outflow, the oil prices may increase.
The WTI crude oil fell below $50 again. The OPEC output cuts are almost offset by the increased US crude oil production. The oil prices are expected to trade lower in the upcoming days as well. Currently, oil price is trading at $49.44 per barrel, 0.2% lower than the previous trading day. The excess supply in the market may not allow the oil price to climb up further to reach $70 in 2017. Experts predict that the oil price would fluctuate between low $50 and $60 in the upcoming months.