Ahead of the meeting scheduled on Sunday organized by Saudi Arabia to discuss crude oil markets, investors locked in on profits as they believe that prices will resume their bearish trend that we have seen in the markets so far this week. There are expectations that output will be increased by 200,000 barrels a day in July in which this will hopefully keep prices falling as its believed they were rising due to speculative trading. The contract shed $0.60 as it closed at $134.01 while recording a high of $135.23 per barrel and a low of $132.00 per barrel.
Today black gold prices are still plunging despite the fact that the EIA will show a fall in crude stockpiles which is showing that there is lack of supply in the U.S but now all the focus is on the scheduled meeting by Saudi Arabia. Investors know that the country will try to find ways to counter surging oil prices as it has been affecting economies while adding to inflationary pressures worldwide. The markets today opened at $133.50 while recording a high of $133.53 per barrel and a low of $133.16 per barrel.
The EIA report is scheduled to come out today showing that crude oil inventories are expected to decrease by 1.5 million barrels while gasoline inventories are forecasted to gain by almost a million barrels. As for distillate stocks which include heating oil and diesel are projected to rise by 1.8 million barrels.
The fall may not show a rise in prices due to the upcoming meeting as all the attention is on OPEC's Saudi Arabia which will move the markets by lowering prices if they increase output like they said.