Home News Commodities Crude oil prices are moving down because of the excessive production

Crude oil prices are moving down because of the excessive production

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The crude oil prices are moving down, as quotes are under pressure from a steady increase in US production. The futures on US crude oil with delivery in April fell by 0.20% to 61.24 USD per barrel. The decrease in Brent variety is 0.12% to 64.87 USD per barrel. Both oil varieties lost about 1% of their value on Monday.
The crude oil prices are falling because of fears that rising US production could lead to even larger volumes of stocks.
The crude oil production in the US rose to over 10 million barrels per day by the end of 2017, according to the International Energy Agency. The production from large shale formations is expected to increase by 131,000 barrels per day in April compared to March to a record 6.95 million barrels per day, shows the analyze of the International Energy Agency.
Latest US oil production data will be released on Wednesday.
On the other commodity markets, the gold lost 0.08% of its value to 1,319.80 USD per ounce due to the slight strengthening of the US dollar on Tuesday. The silver and copper fell by 0.19% and 0.42% respectively. Cocoa, however, rises by 3.29% to 2,546 USD per metric ton.
The dollar index, which measures the strength of US dollars against a basket of six major currencies, rose by 0.10% to 90.01 points.
Investors are focused on today on US consumer price index data. The consensus forecast by economists is for inflation of 1.8% in February, thus keeping its level from January. The data above the forecast, however, may raise expectations for interest rates to rise four times this year.