Although being mostly lifted during previous week, oil prices still face global struggle with slowly rising demand, while locla labor market, investment, macroeconomic policy, and so on push to higher production of OPEC or non-OPEC countries, providing a broad bearish pressure on price.
On Monday Saudi Arabian Oil Minister Ali al-Naimi informed that the total output of the major OPEC producer will stay the same, approximately at 10 million barrels per day (bpd), for the month of April. "I have said many times we will always be happy to supply to our customers with what they want. Now they want 10 million," stated al-Naimi for Reuters.
As the challenge for Asian customers from black gold producing countries as OPEC, Russia and the United States mostly pushed prices lower, consumers cheered this change from previous above-$100 prices during previous year. Impact of the price shock hit almost all the producers and motivated some of them to icnrease the output further (Russia, Saudi Arabia).
Nevertheless, mostly the primary trigger of previous years' oil price shock, the United States informed about a decline in oil drilling rigs, falling for a record 19th straight week to the lowest level since 2010. Such slowdown of oil production finally motivated bulls on the market and pushed prices higher.
Although the impact of such news is seen markedly on prices, we can expect the global supply to remain stronger as demand, holding the actual bearish trend on the market. In this way, we expect West Texas Intermediate to fall back below $50 a barrel, while Brent should be seen below $55 a barrel again this year.
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