The oil prices face a dilemma as the market expects another output glut from the United States. The Organization of Petroleum Exporting Countries were hanging on a cliff as the fear of another crude inventories rising creeps in.
The OPEC, along with Iran are on a constant fear of another round of weekly reports from the US, sending the oil prices in today’s session swindle down. The heightened crude inventories from the country are looking to offset some of the surges from the recent OPEC data.
Furthermore, the ongoing debate against the Donald Trump and Iran is also pulling the price down. The Trump administration is still in the works of whether they would go through with the re-impose sanctions on Iran.
Going back to the oil data, the United States’ crude inventories are expected to hit a massive high this year. The market is expecting an increase in the inventories, hitting the 436 million barrels. The oil production also managed to hit a significant figure of 10.62 million barrels per day.
The barrels per day production was also ahead of the mid-2016 oil production reports. The current phase of the oil production in the United States managed to dethrone Saudi Arabia as the top crude oil exporter.
The only country that outproduced both the United States and Saudi Arabia is Russia. The country is working on producing a whopping 11 million barrels per day.
Analysts are still betting for the inventories to extend their production increase in the near future. The weekly reports continue to disappoint every time, pushing the efforts of OPEC countries to cut the supply on sides.
Inventory Report Pressures Oil Prices
The oil prices were in a recession after massive pressure from the weekly oil inventory report. The U.S. West Texas Intermediate was the first one to drop in the market. The WTI dropped a total of 28 cents in the previous session or a total of 0.4%, settling at $67.65 per barrel.
The Brent crude was also affected by the looming threat. It managed to dup by 32 cents, shedding a total of 0.4%, and settling down at the $73.04 per barrel price range.
Some of the dips were apprehended as the Saudi Arabia oil selling price to Asia increases. This positive factor keeps the oil prices from crashing on worrying levels.
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