Nov. 13 (UPI) — Crude oil prices were lower Tuesday morning amid concerns about a world market oversupply into next year, and after U.S. President Donald Trump said he expected “much lower” prices, analysts said.
As of 9.50 a.m. EST, WTI front-month had declined 2 percent to $58.76 per barrel, while Brent front-month was also 2 percent lower at $68.73 per barrel, as of the same time.
“Unless there is a major shift in the narrative, prices will continue to fall until traders find value,” James Hyerczyk, Senior Analyst at FXEmpire.com, told UPI by email.
“Technical factors could contribute to a turnaround because some indicators are showing a severely oversold market,” he added. Yet there is no way to predict when the selling will stop, Hyerczyk added.
Some optimism that the OPEC and non-OPEC nations could jointly announce production cuts disappeared after the failure to reach a consensus to announce joint production cuts during a meeting in the last weekend in Abu Dhabi. The only accord was that that market monitoring would continue until an early December meeting.
In addition, a Monday comment about the oil market by U.S. President Donald Trump added to bearishness.
“Initial optimism stemming from OPEC and their plans to cut oil production had been rebuffed by President Trump, who stated that he hopes, Saudi Arabia and OPEC would not cut production, adding that oil prices should be much lower,” DailyFX analyst Justin McQueen told UPI.
“OPEC also expects the bearish sentiment to last, with the cartel warning of a global oil glut in 2019, according to the latest monthly OPEC report,” McQueen added.
According to an OPEC report released Tuesday, the cartel expects a 2019 global oil supply output increase of about 2.67 million barrels per day, year-over-year.
“Later today, investors will get the opportunity to react to the latest supply data from the American Petroleum Institute,” Hyerczyk said.
The API releases weekly data — limited to subscribers — that includes U.S. inventory levels, on Tuesdays 4:30 p.m EST.
