After months of relative price stability the floodgates of selling opened wide. Crude oil production in the United States rebounding to nearly 9.1 million barrels per day.
The Saudi oil minister explicitly said that the accord adherents would not abide "free-riders," referenced the shale producers.
In response, Saudi Arabia announced that it would, once again, supply full contract volumes of crude oil to its Asian customers, and it has aggressively discounted its pricing.
With U.S. refiners undergoing seasonal maintenance right now, U.S. oil inventory levels will only grow further, until the units return to service, in the coming weeks.
With U.S. refiners undergoing seasonal maintenance right now, U.S. oil inventory levels will only grow further, until the units return to service, in the coming weeks.
Prices for WTI will likely fall steadily. While it is painful to undertake a price war, you can bet the lowest cost producers will be the last ones standing but damaged greatly. A new reality is happening. Just a thought.
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