Due to oversupply even after OPEC led production cut oil crashed to its three months low on Thursday 9th march, Brent crude closed at slightly less than 52 usd/ barrel and WTI crude was trading at around 49 usd/ barrel around the closing time of MCX in India. This was the lowest price since December 2016 ,when OPEC pledged for production cut.This crash was also the biggest weekly crash of crude oil price in last five months The major reason of this crash was increase in US crude oil inventories which is constantly increasing this year due to increase in US crude production. This crash also shows that crude oil market is reacting strongly to supply demand equilibrium. US crude oil production inventories last week was at high 528.4 million barrel up by 8.2 million barrel from previous week as per US energy information administration website This year due to oil price constantly remaining above 50 usd/ barrel ( WTI crude ) is encouraging US producers to increase crude oil production in Oklahoma, North Dakota and other areas with shale oil production . Notably OPEC and other oil producing countries including Russia pledged to cut oil production by 1.8 million barrel per day during first half of 2017 . Although they are cutting the production yet it is not giving any positive result , because of increase in production from other producers . It seems after the big crash of oil price on 9th march there will be a period of market consolidation with price rising before any other news of production increase comes up triggering another oil price crash. .