Oil Prices Continued To Decline As Investors Awaiting US API Report
- Trade Magnates Team
- Dec 5, 2017
- 1 min read
Trade Magnates - Oil prices continued to decline on Tuesday as traders remain cautious ahead of the weekly report on US stockpiles by the (API) American Petroleum Institute, expected later in the day. Official data from the Energy Information Administration will be released on Wednesday amid forecasts for an oil-stock drop of around 3.5 million barrels which will be the third straight fall.
WTI has come under downside pressure despite the OPEC announcement of an extension of the current output cut deal beyond March 2018 and for another 9 extra months. WTI lost 24 cents trading at $57.24 a barrel while Brent crude futures were at $62.24 a barrel.
The deal to cut oil output by 1.8 million barrels a day was introduced last year by OPEC, Russia and nine other global producers. The agreement was due to end in March 2018, however, the current cut deal has been extended for another 9 months as announced by OPEC at its meeting on the 30th of November.