Crude oil is trading at the level of $42.60 per barrel, after making a low of $42.05. U.S. oil production rose by 20,000 barrels a day last week to 9.35 million, the EIA reported Wednesday. While crude stockpiles slid by 2.45 million barrels to 509.1 million, inventories remain about 100 million barrels above the five-year average.
The gain in U.S. output is more than OPEC expected and is contributing to the decline in crude prices, Iran’s Zanganeh said Wednesday on state radio. OPEC needs to cut a further 700,000 barrels a day to boost oil to $50 a barrel, FGE’s Fereiden Fesharaki said.Energy markets need to brace for more assertive Saudi Arabian foreign policy that could threaten regional stability in the heart of The global oil industry after Mohammed bin Salman’s appointment as crown prince.
Technically speaking, as per daily chart formation of crude oil had completed its down ward target $42.05, which was 1.618% of projection level of Fibonacci calculation.
