WTI Crude Oil prices traded in a subdued manner following a near 4 percent tumble on Monday on concern that record Iraqi crude exports and rising US output would undermine OPEC's efforts to curb global oversupply. The commodity has not been able to surpass $ 55 per barrel levels, witnessing consistent selling pressure in last few days. Prices are lingering around $ 51 per barrel right now.
MCX Crude Oil futures dropped near Rs 3,500 per barrel yesterday following the corrective action and could slide further today.
Meanwhile, rising US rig counts also remains a critical factor for the commodity. U.S. energy companies added oil rigs for a 10th week in a row, for a total of 529, Baker Hughes data showed. Rising rigs data has the potential to pull Oil under $ 50 per barrel in coming days.
Oil prices hit near one and half year high around $ 55 per barrel before witnessing some corrective selling. The US Energy Information Administration (EIA) determined the annual average WTI crude price in 2016 was $ 43 per barrel, ending the year at $ 53 per barrel.
Although 2016’s price was down $ 5 per barrel overall from 2015, WTI ended the year at $ 16 per barrel higher than at the end of 2015. Similarly, Brent ended the year up $ 17 from the end of 2015, at $ 54 per barrel, but the 2016 annual average of $ 44 per barrel was $ 8 below the 2015 average.
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