MCX Crude Oil Tips Above 3900 Target 4080—4140—4220
MCX Crude Oil settled down 3.75% at 3932 after US President Trump said oil prices are “too high”. The comment that urges OPEC to lower the cost of crude put pressure on the Saudi-led group to soften its price-boosting output cuts.
The dips were a result of ample oil supply amid surging exports from the United States, forcing other producers especially in the Middle East to start offering their crude at discounts.
Under pressure from a surge in U.S. supply, Abu Dhabi’s flagship Murban crude has sold at a discount in Asia to its official selling price (OSP) for four straight months – the longest stretch in nearly two years.
US crude oil production rose to a record high of 12 million barrels per day (bpd) in the week ending Feb. 15, the weekly EIA petroleum data showed last week.
Further, the US oil exports hit an all-time high of 3.607 million bpd, topping the previous lifetime high of 3.203 million bpd set in the last week of November 2018.
The surge in U.S. oil output counters efforts led by the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC) to cut output in order to tighten the market and prop up prices.
