Crude futures got off to a bumpy start during the opening bell of the European session Wednesday after the energy commodity dropped by -0.93%. The decline in the price of crude is a byproduct of fear created amongst investors that oil stockpiles will continue to rise for the third straight week. As of 11:30 GMT, Crude futures are reading at $42.27 per barrel and will most likely hold steady till the Energy Information Administration releases its official crude oil inventories figure at 15:30 GMT today.
In other news, OPEC countries are planning to meet next month on the sidelines of a global energy conference being held in Algeria in order to discuss a proposed production freeze to lower the ongoing surplus of oil across global markets. Smaller OPEC member countries like Venezuela, have requested a meeting with all cartel’s members to come up with a compromise that will lift oil prices. Iran, also an OPEC member, has been against a production freeze as it just had its sanctions lifted earlier in the year and wants to see production rise back to ‘pre-sanction’ figures before it will vote ‘yes’ for any form of production ceiling.
Crude Futures Drop Before Oil Inventory Data
Market Trends - 10/08/2016