Oil closed at a mild low, as it remains under pressure from record US reserves.
The light sweet crude (WTI) barrel for April delivery lost 9 cents, reaching $48.40 in the New York market.
This is not a surprise. The same trend continues,”
said Bob Yawger, from Mizuho Securities USA.
Wednesday’s announcement of a further increase in US crude oil reserves gave the starting signal to the drop in prices. At the end of the week, oil lost 9% in New York.
The amount of oil supply in the United States continues to weigh on prices,”
reiterated John Kilduff from Again Capital.
US production is on the rise and exceeds 9 million barrels per day, driven by the resumption of shale oil extraction.
In addition, the number of active wells has been increasing eight consecutive weeks.
The urgent pressure to sell in the past week is leading to weak prices and no it’s the time to hunt good business,”
said Citi analyst Tim Evans.
The supply reduction efforts that began in OPEC in January may be compromised if the United States holds so much reserve and production.