Despite wars in northern Iraq, Syria and Yemen, it seems that output from the Middle East is soaring as Saudi Arabia continues to boost its oil production to take away market share from U.S. producers.
The Kingdom raised its production output to 10.31 million barrels per day in April, compared to 10.29 million barrels in March.
Saudi crude oil exports climbed in March to the highest in nearly a decade, official data showed on Monday.
Crude oil has dropped 2.72 percent after the breach of minor support line and SMA20 level at 59.10, as depicted on the daily chart.
The price may gains some support as it approaches the 50-center line of the RSI 14 momentum indicator.
For today, the coming support ahead for crude oil is located at 56.95.
U.S. Crude Stockpiles
Later in the day, the American Petroleum Institute will release its weekly inventories report, while the EIA report due on Wednesday may show oil inventories slipped 1.4 million barrels in the week ended 15.
U.S. oil inventories dropped 2.2 million barrels in the week through May 8, following a 3.9 million barrels fall a week before, the EIA report released last week showed.
In spite of the consecutive drop in the U.S. buildup, the inventory remains near the highest level for this time of year in at least 80 years.
Baker Hughes will release its weekly U.S. rig count data for this week, after last week’s report signaled a decline for a 23rd straight week.
Crude oil futures for July delivery is currently trading around $58.55 a barrel, while Brent crude tumbled to a low of $64.64.