US Drillers Resume Expansion Amid Global Oil Glut Concerns
Oil prices fell by 3.9% this week as US drillers resumed expansion, despite data showing a significant drop in crude stockpiles.
The US Energy Information Administration reported that crude stockpiles dropped by 6.3 million barrels, three times the expected amount, but investors remain skeptical about OPEC-led production cuts clearing the global glut.
Rob Haworth, senior investment strategist at US Bank Wealth Management, said 'the market remains unconvinced because the fundamentals remain unconvincing.' Excess supply is still controlling market prices, he added.
The longest oil rally in 2017 faltered after Russia opposed deeper supply cuts by OPEC and its partners. Saudi production increased in June by the most in almost a year, according to a Bloomberg survey.