We can see oil prices lifted on Tuesday, correcting from previous half year of persisting drops driven by Sluggish increase of demand, while production is permanently Elevated, intensifying competition of producers. Current data from China showed manufacturing progress in contraction territory, as the Purchasing Managers’ Index (PMI) for March posted only 49.2 pp. Slower growth in industrial powerhouse and rising oil production in Saudi Arabia, while already lifted by Russia and US, add to pressure on bulls to halt their advance and keep supporting bearish trend in a long-term. Correction back to previous year’s highs seem unreasonable if the output remains at current levels. Saudi Arabia informed about approximately 10 million barrels of crude produced per day, close to an all-time high and some 350,000 bpd above the figure it gave OPEC for its February production.
