Crude Oil Price Headed For A Decline
By Anatol Thomas
In the past few months, the crude oil prices have taken up a heavy beating. The OPEC’s efforts to increase demand for oil by reducing oil production has not offered great help in the market. The OPEC members have agreed to never-before-seen production cuts and the deal was active until June. On seeing the surplus in the market, OPEC has asked its members to extend the production cut deal.
The US inventories pay no attention to the increased supply in the market and they continue to add oil rigs. As a result, the US crude oil stockpiles continue to rise and it affects the crude oil prices adversely in the market.
The EIA monthly report shows a glut in the crude oil stockpiles which will put the oil price in the declining path once again. Recently, crude oil price has reached a two-week high after gaining for eight sessions. The EIA monthly report shows an increased production and this means that supply has risen once again.
The continuous increase in US crude production has not helped the oil prices in any way. The Brent futures lost 22 cents and were trading at $49.46 per barrel. The WTI crude futures also lost 20 cents and were trading at $46.87 per barrel. The oil trading was relatively slow as the US Independence Day holiday on 4th July is closing in. Market experts also predict resistance for Brent futures as it approaches $50 per barrel.
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