After reports of a growing crude output in the United States on Wednesday which sent most oil prices to trade at a one-month low during the recent trading session, oil prices traded down for the sixth session in a row on Friday on growing concerns from the market regarding the production in the United States offsetting the efforts of the Organization of the Petroleum Exporting Countries to cut daily output as well as help oil prices trade higher to more normal levels.
The Energy Information Administration announced earlier that production in the U.S. has increased by 332,000 barrels last week totaling overall production to 10.25 million barrels surpassing the production of Saudi Arabia who is currently producing around 9.92 million barrels per day as of last month.
Oil prices then were down during Wednesday’s session with Brent crude futures trading down by 2% at $65.51 per barrel while the U.S. West Texas Intermediate was down to 2.5% to trade at $61.79 per barrel. At the beginning of the year, oil prices were trading higher close to $70 per barrel mostly on the announcement of the OPEC that it would extend its daily production cuts until the end of the year.
Crude oil prices are now down below $61 on Thursday erasing the rally of most oil prices since the beginning of the year as the market continued to sell-off on the commodity on reports of growing crude stockpiles and oil production in the United States as well as the stronger greenback.
Despite the forecast that oil prices would touch $70 per barrel soon, some have pointed out that supply of crude are still affecting the movement in the oil market despite the already massive production cuts the OPEC has implemented in the past years.
By Friday, oil prices have declined for the sixth consecutive session. This was due to the announcement from Iraq regarding its plans to increase its production shortly after the production in the United States have reported to have hit record highs.
Brent crude futures lost another 0.6% during the recent trading session at $64.43 per barrel after falling by 1.1% on Thursday which is its biggest slide since December 20. The U.S. West Texas Intermediate also lost 54 cents and was down by 0.9% to $60.61 per barrel. The two contracts have lost more than 9% since its rally during the beginning of the year.
This is FSM News bringing you the freshest and biggest market updates. We provide in-depth analysis and detailed news stories to keep investors constantly informed in this fast-paced, dynamic industry. Read more from us and be updated!