Oil prices fall as supply continues its upward march

OPEC's plan to unravel years of price drops in oil markets is turning sour as a decrease in production has seen a temporary upward shift in prices, only to be thrown back down by the risk appetite of US producers who've subsequently opened it's abundant supply tap once more. 

As the evidence starts to overwhelming mount in support of additional cuts in production, the sturdiness of conviction by Saudi Arabia in terms of the level it expects to cuts erodes with every fresh report to be released.       

Graph courtesy of Bloomberg

The major US shale gas suppliers who managed to mitigate the headwinds of the price turmoil are eagerly looking for their reward which would go a long way to paying down the debt incurred during the uncertain period that's seemingly holding back good profits.

This will only serve to make the rebalancing process more complex than what it's put across due to the constant stop start motion of the US suppliers and possibly other global producers looking to deplete the surplus on hold.

Whichever way price turns to in the future we'll only know it's capability and trait once the voluminous stock is cleared, a situation that's far from over ...