WTI crude oil settled lower by $1.16 to $57.13 per barrel.
That’s another down day for crude but oil companies are probably feeling a sigh of relief given that OPEC+ raised production on the weekend and there was a report saying they would continue to add barrels until there was cooperation from Kazakhstan and Iraq on repaying excess barrels.
The April low of $55.12 held for now but I strongly suspect there will need to be some good news to get oil moving back higher.
If not, it will just take time for the oil market to rebalance. At $55, US oil producers rapidly slow down drilling and with natural decline rates at 20% per year, it doesn’t take long for the barrels to fall off on the supply side.
This article was written by Adam Button at www.forexlive.com.
