The oil prices are looking to continue their slump this week as the growing output numbers continue to drive investors wary. The U.S. report of larger than expected supply reports from last week is looking to extend this week according to most market speculations.
The rising concern of another supply disaster this week can lead to bigger problems such as another oil supply glut might hit the market. The same glut terrorized the oil prices at the same time last year. Investors are looking to leave the commodity for the growing dollar.
Oil Output Predictions
The crude outputs are looking to take another miserable turn as the US daily reports may climb to levels similar to what they were producing last year. The oil output is still expected to rise this week, putting more pressure on the commodity’s prices.
According to multiple sources, the US crude may fall back to its December oil production which reached whopping 10 million barrels per day. The country managed to overtake the production of the top exporter in the world, Saudi Arabia.
The predictions and the forecasts for the oil production are looking grim at an expected 11 million barrels per day and more by the end of the year. If that happens, the production is expected to hit the top spot which Russia currently occupies, according to facts from the International Energy Agency.
Oil Prices Hit Bearish Territory
The commodity’s prices were down in the market today extending their prior loss from the previous trading session. The West Texas Intermediate or WTI curd was trading at $61.25 a barrel, shedding a total of 11 cents or a total of 0.2% decline from its previous closing prices.
The Brent futures were also slumping in the market, trading at $64.85 per barrel, down a total of 10 cents or a solid 0.2% decline. Both the Brent and WTI saw a massive decline as they enter the market this week with a solid 1% decline.
More importantly, the price is expected to hit lower levels as the United States continues to take the lead as per oil production in the market, overtaking Saudi Arabia in the process.
Iran and OPEC News
On the other hand, the Iranian oil minister Bijan Zanganeh mentioned that the Organization of the Petroleum Exporting Countries or OPEC is going could come to a conclusion on their June meeting to ease the current production curbs by the year 2019.
The officials also mention that they are looking to delay the initial public offering of the Saudi Aramco until next year.
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