Crude Oil Prices Plunge Amid Persistent Oversupply
Crude oil prices have been under pressure due to an ongoing supply glut that has persisted despite expectations of a clearance from storage tanks and anchored tankers. As of mid-June, Brent crude is trading near $80 per barrel, while West Texas Intermediate (WTI) hovers around $75.
The oversupply stems from a combination of record production in the Americas, resilient output from OPEC+ members, and softer-than-expected global demand growth, particularly from China. U.S. shale output continues to set records, with the Energy Information Administration (EIA) reporting production above 13 million barrels per day in May.
Storage levels at Cushing, Oklahoma, the delivery point for WTI, have been hovering near seasonal averages, but floating storage globally has increased by 15% since April. This indicates that barrels are finding it harder to reach buyers.