On Tuesday, crude prices kept going down, right after substantial losses in the previous session, caused by weak expectations for a production freeze by main oil producers.
In New York, April delivery oil futures lost 2.7%, trading at $36.19. May Brent lacked 2.8% at $38.43 a barrel.
Nymex crude demonstrated -3%, while Brent lost more than 2% in the last trading session. Market participants sold off crude contracts, reacting to news that Iran’s officials told the country wouldn’t take part in a recently announced production freeze, thus ruining expectations for an output freeze by main crude producers and respectively blocking an impassionate bullish force in the crude market.
Currently, the crude market has a resistance level close to current levels, due to the quick availability of fresh supply, coming online at high prices.
Key crude producers have just demonstrated few sings of their intention to freeze output. According to the OPEC’s monthly production post issued on Monday, in February, the group’s production tumbled by less than 200,000 barrels.