Sharp Decline In The Price Of Oil, Currently Trading Around $64.87

Published date: 05/06/2018

We have just seen a sharp move down in WTI (5 min chart) after the U.S. government was said to have quietly asked Saudi Arabia and some other OPEC producers to increase their oil production by about 1 million barrels a day. The rare request came after U.S. retail gasoline prices surged to their highest in more than three years. So in a bid to curb higher prices for consumers the US administration took to the OPEC delegates to ask for help. (Source Reports)

OPEC decided some time ago now to curb production levels as prices hit lows of just above $26/bbl in Feb'16. Recently there have been talks of Russia increasing production and OPEC looking for ways to gradually end the output cut arrangement but nothing concrete has yet been agreed. America is coming up to its flagship summer season where much of the population travel the country and it is said the US are also looking to increase production to meet the seasonal demand. 



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