On Monday, crude oil prices edged down, because the chances that Middle East oil producers agree to limit their output seem to be extremely low, while American crude production keeps surging.
WTI crude futures traded at $36.38, showing a 1.1% sag. International Brent futures closed -0.9%, at at $38.33 per barrel.
On Friday, the drops extended a 4% slump, when Saudi Arabia told it would only take part in a global production output if its competitor Iran also join the initiative.
Greatly contributing to worried of global oversupply, which dragged down prices by 70% since 2014, American output is still high notwithstanding abrupt cuts in drilling for fresh reserves and a leap in bankruptcies.
American oil rig count kept sagging this week, including a total ten rigs inactive.
Obviously, the current rig count implies American output would edge down by up to 705,000 barrels every day on average this year and approximately by 375,000 barrels per day in 2017.
American crude output keeps resting at high levels, demonstrating up to 9 million barrels every day. It’s because operators keep their wells gushing in an attempt to survive and service their debt.