WTI Crude has entered a bear market (down over 20% from its highs) amid concerns OPEC-led output cuts won’t succeed in rebalancing the market (and not helped by the fact that Libya is pumping the most crude in 4 years).
For the first time since Nov 2016, WTI front-month traded with a $42 handle…
“People are getting a little fatigued waiting for the production cuts to have effect,” Michael Lynch, president of Strategic Energy & Economic Research in Winchester, Mass., says by phone.
“Between the U.S. shale activity and Libya and Nigeria seeing their production go up some, that’s making people very nervous about the near-term prospects”
Tonight’s API inventory data may provide further impetus for this move.
via http://ift.tt/2rMQ2so Tyler Durden