Crude oil prices took a beating over the past week.
Crude oil prices fell to their lowest level since before OPEC-led a deal in November to curb output.
As a result, analysts at Goldman Sachs say crude may reaching a “capitulation” point.
Furthermore, a faster decline in contracts in the future may result in more oil being pushed out into the market. Higher prices for oil for future delivery than spot prices tends to encourage crude participants to store oil with the expectation of selling the commodity in the future. his is a situation known as “contango.”
Furthermore, a ramp up by U.S. shale-oil producers is being widely credited with the recent downturn in price action for oil. Prices peaked in late February.