Oil trades in the red on prospect of abundant supply

Markets 5/16/2018, 3:58 PM
Oil trades in the red on prospect of abundant supply

Crude prices traded in the red on Wednesday as investors digested the signs suggesting the global supply might increase further due to the increased production activity of industry giants such as Chevron, BP, and ExxpnMobil. Market watchers were also focused on the upcoming Energy Information Administration (EIA) crude oil inventories report due later today.

Meanwhile, OPEC continued to report record compliance with output cuts with the organization's Secretary General Mohammed Barkindo stating earlier world exporters participating in the pact complied with the deal 149% in April. Newly introducer Iranian sanctions are also expected to have a positive effect on the oil prices.

West Texas Intermediate for June delivery lost 0.65%, changing hands for $70.85 per barrel at 3:45 pm CET while the international benchmark Brent for settlements in July declined 0.78% to trade for $77.88 per barrel at 3:47 pm CET.

Breaking the News / VK

Keywords:
oil
Share:

F WBS+0.13%

71.58
Chart for: F WBS 7/18

Brent Crude (...-0.14%

78.60
Chart for: F BRN 7/18