“Crude touched its 50-day moving average during Friday’s brutal sell-off. West Texas Intermediate declined by 4 percent over the session and hit its lowest level since May 3. Over the past five sessions, crude tumbled 4.8 percent in its first negative week in a month and its worst weekly drop since Feb. 9,” according to CNBC.
As prices rose, speculation rose that OPEC could up production and bring new supply to market. Asia could provide a supporting pillar for the energy market as demand among Asian economies is expected to surpass $1 trillion this year, or twice as much as in 2015 and 2016. Asia-Pacific consumers consumes over 35% of the 100 million barrels of oil the world uses per day and the percentage is only rising, Reuters reports.
“Saudi Arabia, the cartel’s largest producer, and non-OPEC member Russia are reportedly considering easing back on their supply cuts,” reports CNBC.
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