It seems like the price of crude oil is finally taking notice of the new records in inventories being set every week.
OPEC is ruminating about further cuts. The problem, for OPEC anyway, is that keeping the price high has fed a resurgence in US production as the rig count keeps driving higher and higher. A resurgence that will not easily be countered as the high prices have allowed producers to sell forward the oil that they have yet to produce either into the public futures market, or by private contract. Either way, they can drill with confidence in the pricing.
As a result, the global re-balancing of the oil markets that OPEC hoped to achieve remains a fantasy. GLWT.
As a side note, speculators’ most recently reported positions in WTI crude oil futures total about 525 million bbl., or nearly $27 billion at the current price of $51.