Reuters reported today that oil prices fell again as rising output in the Middle East raised concerns over possible glut amid negative outlook for demand.
Iraq said its oil shipments from southern fields averaged 3.364 million barrels per day (bpd) in April, up from 3.286 million in March.
Production from top exporter Saudi Arabia was 10.15 million bpd in April, but sources said that it could soon return to a near-record level of 10.5 million bpd.
Iran is also raising output after its emergence from Western sanctions in January and has increased exports to almost 2 million bpd from a little more than 1 million bpd at the start of the year.
Demand worries are also back on the horizon, stoked by a 14th straight months of decline in Chinese factory activity in April. British manufacturing output, meanwhile, dropped to a three-year low and euro zone growth was forecast to be slower than previously expected this year.
There was a 3% drop on Monday, after an almost 20% gain in April, but it slid further today.
I guess higher production against lower demand kinda explains the price dip.
Let us just hope that it will not slide back to February prices again as that would be freaking scary.