Crude prices back down amid rising global supplies
On Thursday, crude futures retreated further during early Asia trade, following data from the Organization of the Petroleum Exporting Countries, which showed a further surge in its output.
In New York, November delivery sweet, light crude futures traded at $49.80 per barrel, down 0.8%, while December delivery Brent crude futures sagged 0.7% right to $51.45 a barrel.
OPEC’s production in September ascended by approximately 220,000 barrels a day to up to 33.39 million barrels a day. OPEC based it on sources including industry analysts, crude traders and ship trackers.
The news can hardly be surprising as even crude producing nations are quite desperate for petro dollar. Respectively, they might have made up their mind to ramp it up before the production cap comes to play.
The strong output by OPEC amid an outcry to drop output highlights the eagerness of OPEC participants to protect their market shares even at a time when prices have been seriously hammered by a more than two year oversupply.