Oil stands still on upward revision to US crude outlook
On Wednesday, crude prices were almost flat during moning Asia trade because traders are discouraged by the upward revision in American crude production outlook.
Aside from that, market sentiment is weighed by concerns that the approaching gathering among key crude producers might not yield any action to diminish the global oversupply.
In New York, September delivery light, sweet crude futures traded at $42.74 per barrel, down $0.05. At the same time, October delivery crude futures stood still at $44.98 per barrel.
For more than two years, strong crude production by the Organization of the Petroleum Exporting Countries as well as those outside the bloc, including Russia and America, created an overhang, which dragged crude prices to as low as $26 per barrel in February.
Data for recent months revealed that the price collapse definitely caught up with the producers. by the way, after a period of dropping production, the US Energy Information Administration currently expects the trend to reverse, assessing output to average 8.73 million barrels a day in 2016 and approximately 8.31 million barrels a day in 2017.