Oil prices fell more than 1% yesterday hitting 14 month lows after reports of an increase in U.S. inventories along with surging shale output.
Let’s call today the Turkey Turn up rather than the dead cat bounce. Oil complex up slightly today after taking a huge turn down yesterday with WTI settling at $53.43/barrel, its lowest level since October 2017. Oil prices fell amid concerns about rising global supply and growing fear of a global synchronized economic slowdown.
Khalid Al-Falih is viewed as one of the most influential individuals in the global oil market. Investors, traders and other energy experts pay attention when he delivers a message. Yesterday, the Saudi Energy Minister Khalid Al-Falih said that Saudi Arabia will be ready to “meet any demand that materializes to ensure customers are satisfied”. Shortly thereafter crude markets began to slide downward.
Crude prices have been surging the last few weeks with the expected loss of Iranian supply beginning November 4th. With that, the U.S. has been ramping up pressure on OPEC to increase production in an attempt to lower oil prices.