The United States of America, No 2 crude oil producer in the world after Saudi Arabi, producing 10.37 million barrels per day (bpd), Russia producing 11 million barrels per day is pumping more oil into the market, thereby forcing the oil prices to slide, even though the initial trend was showing upwards.The prices came down by 13 cents in the afternoon of Monday.
"Money managers liquidated 15,416 long positions in WTI in the previous week, creating 4386 new shorts, Dutch Bank stated.Crude oil prices went up on Friday and early Monday. Availability of a strong number of people in the industry because of the temporary closing of rigs has helped to sustain the prices.
The fact is that the US got more oil even after reducing the number of rigs,617 were active rigs, definitely gives a hint that higher production is expected as one-fifth increase since July 2016 to 10.37 billion barrels per day, may rise further.
Whether it will reflect in the Indian oil prices?