According to Reuters reported on March 19th in Singapore, oil prices fell on Monday, as the US drilling activity increased, resulting in further increase in production, triggering concerns about returning to oversupply.
US West Texas Intermediate (WTI) crude oil futures price was 62.02 US dollars per barrel at 0145 GMT, down 32 cents, or 0.5%.
Brent crude oil futures price was 65.87 US dollars per barrel, down 34 cents, or 0.5%.
The price decline on Monday partially reversed the gains on Friday.
However, on the basis of simple supply and demand, the global oil market is facing a risk of oversupply after a slight loss for most of last year.
The Baker Hughes Weekly Drilling Report showed on Friday that during the week ending March 16, the number of US rigs increased by four to a total of 800.
The number of US rigs is an early indicator of future production. It is much higher than a year ago when 631 rigs were active because energy companies continued to increase spending since mid-2016, when crude oil prices began to plummet from two years. restore.
Due to frequent drilling activities, US crude oil production has risen by more than one-fifth since mid-2016, reaching 10.38 million barrels per day (bpd), making it surpass Saudi Arabia, the largest oil exporter.
The surge in US production, as well as increased production in Canada and Brazil, are weakening efforts by the Middle East-led Organization of Petroleum Exporting Countries (OPEC) to curb supply and raise prices.
Many analysts predict that the global oil market will shift from a slight supply shortage in 2017 and early this year to an oversupply in late 2018.
Graphite Bar,Graphite Rod,Falcon Graphite Rods,Graphite Rod Electrodes
Henan Carbons New Material Technology Co., Ltd. , https://www.hncarbons.com