Oil Slides After Saudis Unexpectedly Cast Doubt On Production Cut Extension

Meanwhile, even as data due on Wednesday is expected to show U.S. inventories shrinking for only the 2nd week in 2017, US drillers have continued to add rigs for past 13 week.

"At this rate, the U.S. is likely to reach a new recent record level of production by the end of the third quarter” Olivier Jakob added.

It's not just supply, however: concerns about oil demand have also weighed on prices. The IEA said last week that global oil demand is expected to grow at a slower pace for the second year in a row. The IEA reduced its forecast for 2017 demand growth to 1.3 million barrels a day, warning that this outlook could still “prove optimistic.”

Don't count oil just yet, with China - as usual - left as the last hope for oil bulls. As the WSJ adds, "there are signs oil prices could go higher. Chinese gross domestic product for the first quarter rose more than expected, at 6.9%. China is one of the world’s largest oil consumers and its intake of crude fell only by 50,000 barrels a day in March from the January and February average. Good Chinese economic growth “could spur additional oil consumption,” said Michael Poulsen, oil risk manager at Global Risk Management."

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