Crude oil continues to fall and the crude oil futures fell 22 cents or 0.40 percent to almost $ 61 a barrel. Similarly, US West Texas Intermediate (WTI) crude futures slipped 17 cents or 0.30 percent to $ 53 a barrel. In 2019, the cost of crude oil has dropped by about 20 percent from its highest level.
Fear of Demand Due to the biggest drop in crude oil prices, the biggest trade war between the US and China is China. Apart from this, the crude oil market has slackened with the threat of increasing US tariffs with Mexico. With this, the situation of the economical slowdown in the two legendary economies of the world is emerging. In the US, manufacturing output has come down to a two-and-a-half-year low in May. It is estimated to decrease the demand for crude oil.
Growing production in the US
US investment bank Goldman Sachs says that the production of crude oil in the US is increasing rapidly. In America, the number of rigs that produce crude oil has increased. Crude oil production in the US has reached 14.1 million barrels per day.
Though peeking at OPEC
Saudi Arabia's energy minister Khalid al-Falih on Monday said that in the second half of this year, there is a consensus between producers to "maintain sustainability in the crude oil market". It is believed that OPEC countries can stop the continued reduction in crude oil production.
The market is eyeing OPEC's meeting. According to OPEC sources, the oil producing countries will meet on June 25-26. In this meeting, discussion on continuing the current production cut will be discussed. It is believed that OPEC countries do not want much production cuts anymore. From 1 January this year OPEC and non-OPEC countries had agreed for 6 months to cut 12 million barrels daily. Since then the deduction has continued.
Fear of Demand Due to the biggest drop in crude oil prices, the biggest trade war between the US and China is China. Apart from this, the crude oil market has slackened with the threat of increasing US tariffs with Mexico. With this, the situation of the economical slowdown in the two legendary economies of the world is emerging. In the US, manufacturing output has come down to a two-and-a-half-year low in May. It is estimated to decrease the demand for crude oil.
Growing production in the US
US investment bank Goldman Sachs says that the production of crude oil in the US is increasing rapidly. In America, the number of rigs that produce crude oil has increased. Crude oil production in the US has reached 14.1 million barrels per day.
Though peeking at OPEC
Saudi Arabia's energy minister Khalid al-Falih on Monday said that in the second half of this year, there is a consensus between producers to "maintain sustainability in the crude oil market". It is believed that OPEC countries can stop the continued reduction in crude oil production.
The market is eyeing OPEC's meeting. According to OPEC sources, the oil producing countries will meet on June 25-26. In this meeting, discussion on continuing the current production cut will be discussed. It is believed that OPEC countries do not want much production cuts anymore. From 1 January this year OPEC and non-OPEC countries had agreed for 6 months to cut 12 million barrels daily. Since then the deduction has continued.
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