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Oil becomes cheaper against the background of record production in the US

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Oil quotes are reduced after the publication of reports by the US Department of Energy on the approach of oil production in the country to a record level of 12 million barrels per day.

On Thursday, as of 10:47 London time, the price of Brent crude oil fell by 0.90% to $ 60.77 a barrel, WTI crude oil lost 1.05% of its value, falling to $ 51.76 a barrel.

The Energy Information Administration (EIA) reported yesterday that US oil production for the week ending January 11 reached a record high of 11.9 million barrels per day.

Since the beginning of the year, oil production in the United States has increased by 2.4 million barrels per day, which raises serious concerns about the oversaturation of the market.

In addition, market participants are also concerned about the decline in oil demand due to the slowdown in the global economy, which, according to some experts, could lead to a global recession.

At the same time, the collapse of oil prices is hampered by an agreement to reduce the production of the largest oil-producing countries of OPEC and the states that joined it, including Russia.

The material has been provided by InstaForex Company - www.instaforex.com