WTI crude oil settled lower by $1.10 to $67.20 in the second day of sales after OPEC+'s decision to delay barrels through Q1 and bring them on more slowly thereafter.
Oil remains within last month's range but is dangerously close to testing the 2024 lows.
There are signs that OPEC control is spreading to the US. Yesterday Chevron announced it would lower 2025 capex by $2 billion this year to a range of $14.5-15.5 billion as it said it would prioritize free cash flow over production growth.
US oil production appears to be on the verge of stalling at levels just above the 2019 peak in a sign that the market is well supplied and investors are not looking for grow That said, production will increase in Guyana and Canada next year, so demand will have to increase to keep the market balanced.
This article was written by Adam Button at www.forexlive.com.
Source link
