U.S. crude production is at the highest level since 1986 and is on target to exceed 9 million barrels per day. Average price for Brent crude oil is expected to be about $18 a barrel lower next year than previously forecast."
Brent crude fell to the lowest in four years as forecasts for rising U.S. crude stockpiles bolstered speculation that global supply gains are outpacing demand. West Texas Intermediate was little changed in New York.
One day after Saudi Arabia declared "war" on U.S. crude oil producers by lowering prices in an attempt to dump cheap crude in the United States market, the White House and private oil companies responded.
Crude is going to have a hard time finding a reason to rally as the market is still trying to adjust to last week's surprise stimulus shot from Japan driving the dollar to a seven year high against the yen.
Brent futures are trading at levels not seen since 2010, leaving traders asking why? Analysts are pointing to a grimmer economic outlook globally. However, the current situation can be seen more in terms of excess supply than weakening demand.
As crude oil prices tried to bounce back from a five-year low, oil companies and OPEC try to adjust to low oil prices. BP earnings kicked off the big oil earnings season and they could have been worse.