Oil prices are falling fast. Here's why

Oil output could return to Oct'16 level says Russia's Novak

Oil output could return to Oct'16 level says Russia's Novak

USA crude futures fell $1.15, or 1.7%, to $66.73 a barrel on the New York Mercantile Exchange in a fifth straight session of losses-their longest streak since February-as traders returned from the Memorial Day holiday.

Rising U.S. crude production also weighed on the market.

"The impression of easing output cuts on its own is sufficient to put a cap on (oil) prices", said Hussein Sayed, chief market strategist at FXTM.

Saudi Arabia and Russia's potential policy shift does not materially change Goldman Sachs Group's bullish oil outlook, the bank's analysts, including Damien Courvalin, said, reiterating the bank's forecast of Brent at US$82.50 per barrel in the third quarter.

OPEC started withholding supplies in 2017, to the tune of 1.2 million barrels per day, to tighten the market and prop up prices, which in 2016 fell to their lowest in more than a decade at less than $30 per barrel.

By Navneet Damani Oil prices turned choppy for much of the last week, before crashing by over 4 per cent on Friday.

USA oil production C-OUT-T-EIA has surged by more than 27 percent in the last two years to 10.73 million barrels per day (bpd). However, the existence of these risks mean that oil prices are likely to remain volatile, witnessing periods of spikes should any of these risks escalate. Prime Minister Dean Barrow in a press conference recently said that prices would be going up due to the rise in price on global markets.

Sichuan Airlines Co-Pilot Sucked Halfway Out Of Broken Windshield
A Chinese pilot was almost sucked out of a plane with 119 passengers aboard when one of the cockpit windows fell out mid-flight. Responding to a request for comment, the FAA said based on its own data, "passenger window failures are rare".

Members of OPEC and Russian Federation are scheduled to meet June 22 in Vienna to discuss the easing of their self-imposed caps on production, which they put into place in January of 2017.

Saudi Arabia clearly in favour of higher oil pricesThe success of Saudi Arabia's fiscal deficit target is dependent on oil prices.

Adding to this, OPEC achieved its goal to trim OECD crude oil stocks to below the five-year average after agreeing to cut output more than a year ago, a senior OPEC source told S&P Global Platts on Monday.

Meanwhile, supply issues surrounding Venezuela and Libya, and the possibility of disruption in Iran because of the sanctions propped up prices.

Recent data from the U.S. Commodity Futures Trading Commission suggests that the steep plunge in crude oil last week may have been part of a well-orchestrated plan by hedge fund managers to take out a few or the weaker longs, or to trap them at such high levels that they'll be forced to sell at unfavorable prices.

Ahead in the week aligns the API and EIA reports followed by rig count. USA production broke 10 million bpd for the first time in 48 years in November. U.S. President Trump last month criticized OPEC for contributing to higher crude.

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