Thursday, 4 May 2017

Oil prices plunge on signal deeper supply cuts unlikely

Oil prices have slipped dramatically, driven by speculation the world's supply glut will take longer to eradicate than markets had forecast.
Brent crude was trading at $48.22 a barrel on Thursday evening - a daily loss of 5% - building on earlier falls sparked by weak Chinese economic data and higher-than-expected US oil inventories.

The slump gathered steam when it was reported that targeted production cuts, aimed at raising prices, may only be extended next month rather than deepened.

It was November last year when the OPEC cartel of oil-producing nations agreed, with non-members including Russia, to slash output in the first half of 2017.

That deal helped Brent climb back above $50 per barrel from lows below $30 witnessed in January 2016 - contributing to higher profits for many oil companies while motorists faced growing fuel bills.

SKY     News.