After increasing production levels, along with Russia, in May by nearly 100,000 barrels per day, there is now talk of that Saudi Arabia will continue to increase production in June. This comes after general signals about supply increases.
The price of oil has fallen (WTI) from nearly $73 per barrel to close at $65.56 (Jul 2018 contract) on Friday, June 8.
As discussed at OilPrice.com:
"The fascinating dynamic between the three most important players here – the US, Russia and the Saudis – is going to tell the real story of what the final outcome from the OPEC meeting will be and where oil prices are going to go from here."
This climate of rising supply, even if only imagined, may drive these prices lower when the markets open today, June 10, at 5 pm CDT. That would be an opportunity to short, but I may wait to see if it gaps.
There is already supply areas around $65.80 and $66.10, with some demand at $64.90. We'll have to see what the market does.
Update at 11 pm CDT: The price of oil barely budged since 5 pm. In the first 15 minutes, it did drop 30 cents, but slowly rose to about 65.70 and is now 65.65. Not much movement. When the big markets open we'll see what happens then. Most likely, talk of increased supply over demand has already been priced into the market.