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Bisnis.comJAKARTA – The price of crude oil in the United States has continued to fall to its lowest level since March, after the US government announced a seventh consecutive weekly increase in crude oil inventories and an increase in production.
The West Texas Intermediate (WTI) oil price for the December deal ended Wednesday's trading session (11/07/2018) with a 0.9% or 54 cents drop to 61.67 USD a barrel on the New York Mercantile Exchange. The total volume exchanged represents about 57% more than the average of 100 days.
The Brent price for the January delivery edged down 6 cents and ended Tuesday at $ 72.07 a barrel on the London stock exchange ICE Futures Europe. The global benchmark has traded at a premium of $ 10.25 over WTI for the same month.
According to Bloomberg, oil prices in New York have added to the dam the longest decline since 2014, after the Energy Information Administration (EIA) announced an increase in US crude oil inventories. 5.78 million barrels last week.
The EIA also reported an increase in domestic crude oil production, which reached a record 11.6 million barrels per day, while stocks in Cushing, Oklahoma, increased by 2.42 million barrels a day. barrels.
Although oil prices rose at the beginning of the session as a result of reports that OPEC and its allies were considering new measures related to the reduction of production.
"Basically, it's too much inventory and too fast," said Rob Thummel, managing director of Tortoise, which manages 16 billion-dollar energy-related badets. US dollars.
"This has upset the market and has gained momentum relative to the price of crude oil and OPEC may need to re-evaluate and consider production cuts for 2019 at this point."
Reference oil prices in the United States are in a bear market zone after prices above $ 76 per barrel in early October. With that, oil prices fell for eight consecutive days.
Ministers of the Organization of the Petroleum Exporting Countries (OPEC) will meet in Abu Dhabi this weekend to discuss options for 2019, including the possibility of further reducing their production next year.
Meanwhile, the US government estimates that its own oil production will grow at the fastest pace this year.
"This decline has been fairly durable and relentless," said Rob Haworth of US Bank Wealth Management in Seattle. "Technically, investors are wondering when this is going to stop."
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