Oil Prices Slide As Supply Grows
Oil prices returned to their downward trajectory yesterday after U.S. government data showed growing domestic crude supply. An Energy Information Administration report showed that storage of crude oil rose for the first time since mid-July, and in some areas it is at its highest point since May.
Oil futures are down 13% since the end of August due growing supply and low demand. Historically, American demand has declined after Labor Day so it is unlikely that oil prices will go back up very soon.
However, analysts expect OPEC countries to moderate production following the recent price decrease. Growing traffic in Asia and Europe could be another force that pushes oil prices back to their pre-September levels.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.