The price of West Texas Intermediate (WTI) crude oil dropped 4% overnight to $67.50 on the news that Saudi Arabia and Russia are discussing plans to raise production by over 1 million barrels per day.
Ahead of a key OPEC meeting in Vienna next month, the energy ministers of Russia and Saudi Arabia met in St. Petersburg yesterday to review the terms of a global oil supply pact that has been in place for 17 months.
For the week, WTI tumbled about 4.9%, its biggest loss since early February and a sharp reversal after six weeks of gains. Additional production from US drillers also added weight to WTI prices.
We would expect to see both OSH and WPL trade lower to start the week with key support levels at $7.80 and $31.50, respectfully.