Stock Maket Rebound good for investors
In recent weeks, amid relative calm in the stock market, oil prices have slid back to their lowest level in a year. On Wednesday, WTI crude oil, the U.S. benchmark price fell to $42.13 a barrel, hitting its lowest since August 2016.
And it’s all about the most basic principle in economics: supply and demand. In the global oil markets right now there is simply too much supply.
This week’s slide came, after a report earlier in the day which crude inventories fell more than expected. A decline in inventories would be seen as a good sign for oil prices stabilizing — or even rising — as low prices have been blamed on a glut of supply.
Crude oil production in the U.S. is now back at its highest levels since 2015 and at its highest in the U.S. since hitting a post-oil crash low late last year. And as long as production continues ramping in the U.S., no amount of coordination from OPEC members or other state-sponsored oil producers is likely to bring markets into balance. This is a tough one for Nigeria though since politicians need this money
meanwhile the stock market seems to want to hold it own and stay up for another week
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