- The price of crude oil has fallen sharply on Monday evening due to the fear that producers of cheap shale from the United States will return to the market.
The Brent oil commonly used in Europe lost 2%, WTI oil 1.6%. According to Reuters, hedge funds went full on Monday to push the price of oil. ING Research calculates that this is the largest speculative position of the funds since February this year.
The number of drilling platforms in the United States has once again increased slightly according to figures from supplier Baker Hughes. Since November, the number of opened oil wells with shale has not decreased, according to ING Research. 'And given the stronger price, we expect the number of platforms to rise,' said his analysts.
Oil cartel OPEC last week halted its production limitation of 1.8 million barrels a day by the end of 2018. That had to raise the price. That agreement within OPEC and with some non-OPEC members hardly led to price increases.
Demand for oil has fallen back in the United States. Over the weekend, the price went down by 3.5% with the American wholesaler.
China announced Monday to recommend regions to reduce energy prices. That puts pressure on prices.