Reportedly, Iraq, which is the world’s seventh largest oil producing country, will ramp up its exports amid higher production. Iraq’s July oil production rose to 3.71 million barrels per day.
Strong oil output from China (the fourth largest oil producing country), along with a diffusing of the militant situation in Nigeria, are also contributing to oil price declines today.
WTI crude oil futures were down to $47.06 per barrel this morning, down $0.35 (-0.74%). Crude appears to have hit a short-term top just above the $49 level, with a period of additional profit-taking expected prior to any subsequent rallies taking place.
The XLE fell $0.14 (-0.20%) to $69.57 per share in premarket trading Tuesday. The largest energy-focused ETF has risen 15.5% year-to-date, doubling the performance of the S&P 500 during the same period.