Oil prices dip as traders keep cashing in on April’s fast run
On Monday, crude oil prices edged down as profit-taking offset positive sentiment from descending American crude oil output as well as a weaker greenback.
The profit-taking actually arose close to the end of last week, when oil hit this year’s peaks as market participants pinned their hopes that oil inventories would keep falling, even ignoring today’s glut in the energy market.
In New York, June delivery oil futures were worth $45.56, showing a 1% tumble. In London, June Brent crude futures slid 1.3% at $46.76 per barrel.
Wednesday’s reports issued by the US Energy Department revealed a dip in domestic oil output for the seventh week, cutting production by approximately 300 000 barrels since the dawn of 2016.
In the United States crude oil inventories are still going up. Respectively, output is only heading south, thus reflecting the overall flexibility of American shale oil. Obviously, higher prices could prevent any further reduction in production.