Oil prices are falling fast. Here's why

Oil prices fall as supply from top three producers set to rise

Oil prices fall as supply from top three producers set to rise

The spread between Brent and U.S. crude oil stands at almost $9 per barrel, its widest since March 2015.

OPEC has been monitoring OECD inventories closely, and not just because its target in the cuts was the OECD inventory five-year average. The catalyst behind the selling pressure are reports that Saudi Arabia and Russian Federation may increase production as early as June. There's still significant geopolitical risk out there following the prospect of U.S. sanctions on Iran and the crippling of Venezuela's oil output, but a return to $100 oil is looking less likely this week than last.

Energy ministers from Saudi Arabia, the United Arab Emirates and Kuwait plan to meet on Saturday to discuss OPEC matters, according to people with direct knowledge of the matter.

Still, there are some concerns surrounding political turmoil in Italy, and the potential for further instability there rattled the stock market and raised concerns over a possibly decline in European oil demand, said Flynn.

This important development will likely prevent crude oil prices from collapsing. It is unknown if the decrease in world prices will be felt in Belize.

The problem with set-piece meetings like the OPEC gathering on June 22 in Vienna is that they focus tremendously on what is said, rather than what is actually done. "There is, therefore, scope for an increase in OPEC output while still maintaining supply cuts for the remainder of the year", Tchilinguirian added.

Despite efforts being made to contain the price hikes, the price of oil is however expected to rise any time soon into the future, as the lack of world investment in the oil sector will not allow any major companies to produce more than the current level, which is around 100 million barrels per day.

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Brent now commands its largest premium over US futures in more than three years, meaning USA exports are rapidly becoming far more competitive globally than those from northern Europe, Russia or parts of the Middle East.

Consumer staples are directly affected by crude oil prices because petroleum derivatives are used in packaging material including bottles and tubes.

"We had a surprise rise in the rig count after a period where there's been some speculation about bottlenecks in USA production limiting the prospect of further output increases", Pedersen said.

There is therefore no doubt that Zimbabwe with a new administration working so hard to improve the country's economic fortunes, is being negatively impacted by this 50 percent price hike of oil in the past six months.

Saudi Arabia knows it has a delicate balance to strike.

Here's the problem: "Middle Eastern crude oil producers could be one the biggest losers from the new regulation, because they pump high-sulfur crude, Amrita Sen, chief oil analyst at Energy Aspects", told CNBC.

The upshot: Oil has played havoc with our currency market with the USD/INR pair plummeting all the way to 68 levels since April 2018.

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