Crude oil prices struggle to shake off yesterday's heavy losses on Friday, with the barrel of West Texas Intermediate trading at $48.40, losing 0.37% on the day at the moment.
After jumping to a 10-day high at $50.22 on Friday after Khalid A. Al-Falih, Minister of Energy, Industry and Mineral Resources of Saudi Arabia, said that Iraq's commitment to the oil supply-cut agreement was strengthening and that would impact the global oil market positively, the barrel of WTI struggled to extend its gains as that statement by itself wasn't enough to convince the investors that the market was balancing.
In fact, in its monthly Oil Market Report for August, which was released earlier on Friday, the International Energy Agency (IEA) announced that global crude supplies rose by 520,000 barrels per day in July. Moreover, "the cartel and its 10 partners have achieved 87% compliance with the 1.2-million-barrel-a-day cut for the year to date. The OPEC and non-OPEC countries are currently producing about 470,000 barrels of oil a day above the agreed quota," Reuters reported.
It seems like investors are paying more attention to the actual data rather than optimistic statements and crude oil could continue to suffer unless the output declines in the near-term.
The barrel of WTI could face the initial hurdle at $50.40 (Aug. 10 high) ahead of $51.05 and $52 (May 25 high). On the downside, supports align at $48 (psychological level/daily low), $46.40 (Jul. 25 low) and $45.40 (Jul. 24 low).
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