After reaching multi-year highs, WTI is now down roughly 4%.
Investors are concerned that manufacturers will refuse to curb output.
The focus moves to US weekly crude oil stock statistics.
Crude oil prices spiked at the start of the week after OPEC+ producers failed to reach an agreement on the group’s oil output strategy and called the meeting off. On Monday, the barrel of West Texas Intermediate (WTI) climbed more than 1%, maintaining its bullish trend, to reach $76.95, its highest level since November 2014.
Oil, however, came under severe selling pressure when American investors returned from a long weekend, and WTI fell all the way to $72.92 in the second half of the day before consolidating. WTI is currently trading at $73.50 per barrel, down 3.5 percent on the day, and on track to register its worst one-day percentage loss since plunging more than 4% in early April.
Following Monday’s battle with Saudi Arabia, investors appear to be concerned about the United Arab Emirates (UAE) unilaterally increasing its oil output and other producers doing the same. The UAE opposed extending the current production quotas until the end of 2022, rather than the current deadline of April 2022.
The American Petroleum Institute (API) and the United States Energy Information Administration (EIA) will release weekly crude oil stock data later this week./n
