The oil market is languishing and the trend is downward judging by the movement of benchmark crude prices. The price of Opec’s basket of crude oils posted $53.79 a barrel on July 20, down from $64.96 on May 6.
Brent crude oil prices posted $56.67 a barrel, down from $69.63 during the same period.
The reasons are many. Most importantly, concerns about more than 2 million barrels a day (mbd) of oversupply is what really matters. Opec production is now 31.7 mbd according to IEA and 31.4 mbd according to Opec, which is well above the ceiling of 30 mbd decided by the organization.
Production in Saudi Arabia, Iraq and UAE rose last month.
Other factors weighing on oil prices are the Greek crisis and its possible impact on growth in the Eurozone...