Reuters reported Monday that Saudi Energy Minister Khalid al-Falih said OPEC and its allies will need to cut around 1 million barrels per day from October’s production levels beginning next year to overcome the crude oil oversupply situation. This comes a week after the U.S. granted waivers to its allies to purchase Iranian oil which helped perpetuate the incredible sell off we’ve seen in oil prices over the past few months, with WTI down about 20% from its October high, last trading at $61.09/barrel.
On October 3rd The oil market intraday highs were as follow:
Crude Oil – 76.92
RBOB Gasoline – 2.1464
ULSD Diesel – 2.4541
Since the start of November, the two-year bull-run in the energy sector is facing one of its biggest challenges. Within the oil market universe, there are growing concerns of a global economic slowdown and oil demand following suit as the continued price collapse, almost 15%, from its October highs.