Brent crude oil fell below $ 100 per barrel for the first time in a month. While West Texas Intermediate (WTI) declined amid speculation that the stock will go up, after the Organization of Petroleum Exporting Countries (OPEC) pledged continued to maintain its production.
At a meeting in Vienna on 31 May, the members of OPEC agreed to maintain production ceiling of 30 million barrels per day. Meanwhile, the crude oil inventories in the United States (U.S.), the biggest consumer of commodities increased 398 million barrels, the most since 1931.
“We are in a situation where the market is vulnerable to downside risks, as the supply situation with the market well covered,” said the head of CMC Markets analyst Ric Spooner.
Brent crude for July delivery fell 64 cents to USD99, 75 per barrel on the ICE Futures Europe exchange, based in London. Crude oil prices have experienced penrunan 2.2 percent last week and 1.9 percent in May.
While WTI for July delivery fell 71 cents to USD91, 26 per barrel in electronic trading on the New York Mercantile Exchange. Prices dropped 2.3 percent last week and 1.6 percent in May. As a result, the disparity between Brent and WTI crude oil closed down to $ 8, 13 per barrel, from the previous, $ 8, 42 per barrel.
WTI extended losses after failing to break resistance chart. Convergence-divergence indicator Crude oil also fell below zero for the first time in a month, oil has lost momentum shows technical.
In fact, most OPEC members expressed their support for maintaining WTI above $ 100 per barrel last week. Some, including Venezuela, voiced concern that excessive production by the other members will curb prices. OPEC itself, has been pumping about 1 million barrels per day.