Further losses for US Crude this week?

In the last two weeks, the price of US Crude has fallen from a high of $42.38 to $37 in early trading today. What looked like a great 5-week recovery from the yearly lows of $27 to $42, now seems as if it has been premature for the following reasons:

• The rally was based on output cuts happening after the mid-April meeting
• Saudi reiterated on Friday it won’t cut production unless Iran will participate which they clearly denied time and time again
• Russia’s oil output highest in 30 years
• Hedge funds have cut their net long positions for the first time in six weeks
• Falling rig counts in the US haven’t led to the expected drop in oil supply
  • Any drop could easily be offset by Saudi, Russia or Iran or by draining current stock

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