Crude oil prices fell sharply on Friday, shedding over 9% for the week. The declines in price came amid concerns that the trade wars would lead to slower growth globally. The tariffs imposed on Mexico is also expected to impact some US oil refineries. Meanwhile, OPEC is due to meet later in June. However, the US crude oil production increase is expected to offset any production cuts from OPEC and Russia.
Will Oil Prices Fall Further?
Last Friday’s declines in crude oil prices could see some moderation in the near term. The immediate price level of interest is the 57.50 handle which briefly served as support. A return to this price point to establish resistance could mark further downside in oil prices. The lower support remains at the psychologically crucial $50.00 handle.
