The price of oil slipped again for the seventh time on Tuesday right after OPEC announced a growth in crude stocks worldwide; an unexpected leap in production from its major member Saudi Arabia occurred regardless of output curbs by the group.
U.S. crude closed down by 1.4 percent, or 68 cents at $47.72 per barrel in Tuesday’s sessions, now on its seven-week straight of lows, its longest streak since January 2016.
Brent futures edged down 0.9 percent, or 45 cents at $50.90 per barrel. Brent declined below their 200-day moving average for the first time since November.
Despite the OPEC made a higher modification to its global demand outlook, proof of even modestly higher Saudi outlook upsets investors. The sell-off appointed their prices to the declining levels since November 30, time when the largest oil exporter in the world, influenced the Organization of the Petroleum Exporting Countries (OPEC) to notch supplies.
Other sources said that Saudi’s output declined by 9.797 million barrels per day; however Riyadh told OPEC it added 10.011 million barrels per day.
Oil prices have returned majority of its cuts since OPEC’s announcement of reduction intents to stabilize prices and pull down global supplies.
Oil stocks in modern nation edged higher in January to stand 278 million barrels above the five-year average, along with U.S. shale and non-OPEC stockpile rising, according to OPEC’s monthly report.
Figure this week is expected two show one more rise in U.S inventories by last week’s surprising gains, it would then be the tenth weekly increase in U.S. crude stocks.
The American Petroleum Institute reported U.S. crude supplies declined by 531,000 barrels; the report comes ahead of official U.S. government data this Wednesday morning. With supplies rising, investors are looking for signs that OPEC will continue cuts beyond June. Saudi hasn’t confirmed yet if it’s ready to prolong stockpile curbs.