WTI oil price slides under $50 per barrel

WTI oil price slides under $50 per barrel

But since reaching four-year highs in October, oil prices have plunged around 30 percent as worries about falling demand in a slowing world economy have taken their toll. USA crude futures rose $1.64, or 3.3 percent, to $51.94 a barrel.

Earlier in the day WTI Crude had breached the $50 support level for the first time in more than a year, following yet another USA crude inventory build that the EIA reported on Wednesday.

US crude stockpiles went through a 10th straight week of increase, up 3.6 million barrels in the week ending on November 23, piling concerns over supply surplus and sagging demand growth, according to a weekly EIA report released on Wednesday.

He said at the time that supply could exceed demand by as much as 1 million barrels per day (bpd), or 1 percent of global demand, suggesting that OPEC and its allies may try to reduce production by that amount.

According to the news report by Bloomberg, after a short respite, the downward slide of the price of crude oil started once again after news broke that there had been an unexpected large increase in American crude oil inventories.

That would bring Riyadh to its second problem: Russian Federation, a long-time foe turned ally over the last two years.

Saudi Arabia's energy minister, Khalid al-Falih, must play a bad hand of cards as well as he can at next week's meeting of OPEC and non-OPEC oil producers in Vienna. Investors, meanwhile, remained wary about the weekend's crunch trade talks between US President Donald Trump and Chinese counterpart Xi Jinping at the G20 summit in Buenos Aires.

Putin also thanked Saudi Arabia and its Crown Prince for the OPEC-Russia cooperation in managing the oil market.

The organisation sets production volume to meet the demand for oil in negotiation with countries outside OPEC, such as the U.S. and Russian Federation.

“Near-term oversupply has gutted Brent prices, ” said Jason Gammel, analyst at USA investment bank Jefferies, adding that there was “an increasing urgency to move crude into storage”.

This urgency is visible in the Brent forward price curve, which now has prices for future delivery above those for immediate dispatch, a structure known as contango which makes it attractive to put oil into storage for later sale. Yet, Moscow is yet to commit to any cuts and appears reluctant to shoulder as much of the burden as it did in 2016, the people said, who asked not to be named because the negotiations are private.

The West Texas Intermediate futures dropped by 2.5% in trading in NY after the report by the US Energy Information Administration that revealed that American oil supplies had gone up for the 10th week in a row.

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