Oil problems are increasing - likely decrease on WTI

Black Gold futures met resistance at around $50.50 and $52.50. Markets account for the increase in supply from producing countries, in particular Libya and Nigeria. The two countries have restored the production of two of the world largest oil fields and market participants expect world oil reserves to grow.

"Officials from the oil producing countries will discuss the global market, oil export control mechanisms under the OPEC deal to reduce the production of an energy forum in Moscow this week," said Russian Energy Minister Alexander Novak.

In September, OPEC countries pumped a little more crude oil, as Libya, Nigeria, Saudi Arabia and other producers increased production. on the graph below, we can trace back the correlation between oil and total world production. Production has been booming since 2009, with the impression that even slight changes lead to strong oil depreciation.

This evening, at 23:35, we expect preliminary data on API oil production, with expected US stock declining by -0.761M. With more than the forecasted data, we may see a confirmation of the increased production and a strong drop in the price of black gold.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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