04-10-2018 04:20 PM
Oil prices fell on Thursday morning in Asia from four-year highs in the last trading session. The U.S. crude inventories were accounted to increase, as Russia and Saudi Arabia had a confidential treaty in September to increase oil supply.
According to Energy Information Administration data on Wednesday - U.S. crude inventories rushed forward by around 8 million barrels last week to about 404 million, the largest rise since March 2017. The country’s crude oil supplywas at a record 11.1 million barrel per day.
According to Mr.Ponmudi, Market expert & Managing Director at Enrich Commodities – Information of last week revealed a much more important than anticipated that built in U.S. commercial crude, which is usually indicates that oil prices should drop down.
Further to the OPEC meeting in September it was resolute not to increase production, its de facto leader Saudi Arabia made a private treaty to raise their oil supply from September through December as crude goes toward $80 a barrel.
This came into place after U.S. President Donald Trump held responsible OPEC for high crude prices and insisted on the members to enhance supply to constrainthe fuel costs.
Sources revealed “The Saudi minister told U.S. Energy Secretary Rick Perry that Saudi Arabia will increase production if its customers rquested for more oil.”