While most people are focused on the current glut of crude oil, soon we will start to focus on production destruction. The International Energy Agency (IEA) was, in the beginning of the year, warning that the globe would be producing so much oil that we would have no place to put.
Today, the EIA will release their monthly Short Term Energy Outlook Report (STEO). The market will be very focused on the EIA’s new projection for U.S. crude production now that they are employing a new survey method for crude production.
On Tuesday, crude oil reversed and declined sharply as weak Chinese data weighed on investors’ sentiment. As a result, the commodity approached support levels, but will they encourage oil bulls to act in the coming days?