Oil prices Dip on High OPEC Production and Rising US Inventories

On Wednesday oil prices went lower after the US inventories of crude oil reported a rise and ongoing high output from OPEC countries. These all factors are raising concerns of a fuel supply overhang in the future.

Oil Stats today

The international benchmark for crude oil prices, the Brent Crude futures were down by 3 cents from their last close. They were at $48.96 per barrel at 09:50 GMT.

WTI, US West Texas Intermediate crude futures went down by 7 cents and were at $46.48 per barrel.

Stocks of crude oil in US rose last week which added 1.6 million barrels in the week of July 14. Nigeria and Libya raised output and thus OPEC output remained high despite its pledge to cut the production.

Nigeria and Libya are making big moves in the crude oil production

According to oil analysts, Nigeria and Libya are reinstating their crude oil supplies and making a big move ahead. Statistics say that Production in Libya is currently above 1 million barrels a day. Nigerian August loading schedules have risen over 2 million barrels a day.

Nigeria and Libya follow exemption from the deal between OPEC and other oil producers including Russia for lowering down the production by 1.8 million barrels a day between this January and March 2018. This deal was made to tighten the crude oil market and step up the prices.

Switching to the demand side, market analysts have warned that China’s use of crude oil would likely step down in the second half of the year.

Yaron Mazor is a senior analyst at SuperTraderTV.

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