Friday, prices started showing us a hint of what was going to happen today which was it started to plunge after the industry newsletter that the Middle East Economic Survey was willing to increase output. As economies started to realize there was consideration of an increase in the output, their fears were turning into hopes as investors started to walk away from markets figuring soon prices will decline like it was witnessed today. The contract shed $1.88 as it closed at $134.86 while recording a high of $137.08 per barrel and a low of $133.46 per barrel.
Starting of the week with black gold prices slipping as Saudi Arabic is getting ready to push production to its capacity in which it has not done in decades. Productions will be increased to 9.7 million barrels a day starting July. This is going to cause a global incline of crude barrels per day worth 550,000 or more like 6% more than the production in May. Today the markets opened at $134.41 while recording a high of $134.87 per barrel and a low of $133.46 per barrel.
As prices take a fall, this is a good sign for inflationary pressure to ease since many economies worldwide are suffering inflation and food prices are just not helping any as they continue to soar. Saudi Arabia is the only member of OPEC with capacity to produce more crude oil in order to increase supplies in the market as to keep lowering prices.