Oil prices were little changed on Friday as investors weighed rising supplies from major producers and the impact on fuel demand from the COVID-19 pandemic.
Brent Crude and WTI Crude both contracts are on track to post a 2%-3% drop this week after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+ that includes Russia, agreed to gradually increase supplies by 2 million barrels per day between May and July.
Analysts expect global oil inventories to continue to fall, however, as fuel demand accelerates in the second half of this year as the global economic recovery gathers steam.
Crude Oil market still in a sideways down status. Overall the market is bearish and yesterday’s break puts trade back into a bear stance, positioned for declines to test under 57.40. A close under 57.40 warns for a big wash towards the 53.90 low.