As demand declined, US crude oil inventories increased, and investors were concerned about the risk of oversupply of oil. On May 6, oil prices fell, ending many consecutive days of gains. Oil drilling equipment manufacturers share with you.
West Texas Intermediate Crude Oil (WTI) futures prices fell 2.1% to the US $ 24.05 per barrel. At 02:01 GMT, it fell 14 cents to $ 24.41 per barrel. WTI has ended its five consecutive days of upward momentum.
Brent crude oil futures prices remained stable at $ 30.97 per barrel. In the previous trading day, Brent crude oil prices rose by 13.9%, which was part of a six-day increase. Because Brent crude oil contracts have risen too much in the past, investors may be reluctant to increase purchases.
The Brent crude oil relative strength index closed at 72.93 points on May 6, which is a technical indicator used to track future trading momentum, indicating that the index is in an overbought state after the recent rise.
Previous data released by the American Petroleum Institute on May 5 showed that US crude oil inventories increased by 8.4 million barrels last week, an increase that exceeded expectations. As the market improves, oil producers cut back on oil supply after demand has tightened, and oil prices have recently risen. But analysts warned that the market rebalancing process will be tortuous.
Lackland, head of the commodity strategy at the National Australia Bank, said: "We are talking about the normalization of supply and demand, but there is still a long way to go. At present, there have been a lot of supply reductions, plus Some early signs of rising demand mean that the rate of increase in inventories is slowing. When oil prices begin to maintain their upward trend, producers will restart oil well production. " Our company provides oil equipment centralizer.
Diamondback Energy, a US shale oil producer, said that if WTI oil prices remain above $ 30 per barrel, it will consider restarting the drilling program, which shows that producers do not want to stop production for a long time.
The API report said that the US's gasoline inventories, the world's largest oil producer and consumer, fell by 2.2 million barrels, while a Reuters survey showed that analysts expected gasoline inventories to increase by 43,000 barrels, and refinery crude oil inventories also increased.
