Oil slid more than 4 percent on Thursday, to its lowest since late November as investor worries about a growing global glut of crude erased most of the gains that followed last year's OPEC's output cut.
In agreement made past year, OPEC, Russia and other producers announced goals to curb production by 1.8 million barrels per day (bpd) for six months from January 1.
At the time of publishing, global benchmark Brent crude was trading 0.72 per cent higher at $48.73 a barrel, while West Texas Intermediate (WTI) prices were 0.44 per cent higher at $45.72 a barrel.
US oil futures on the NYMEX fell almost 4 percent and averaged about $49 per barrel during the five trading sessions ended May 2.
Reuters on Thursday quoted three delegates as saying that OPEC and non-OPEC oil producers looked likely to extend their agreement to limit supplies beyond its June expiry to help clear a glut, downplaying the chance of additional steps such as a bigger cut.
While the steep price fall is likely to force Opec members to extend production cuts when they meet later this month, analysts do not expect producers to scale back output any further.
IPhone 7 Was Best Selling Smartphone In Q1 2017
While global iPhone unit sales were down marginally year on year, the company had plenty to cheer about its performance in India. While many consumers in India don't initially consider Oppo and Vivo they pick up share due to their strong in-store presence.
A glut of crude oil on the market helped push crude oil prices to historic lows a year ago, but the modest recovery has led to plans of expansion for major oil companies.
The cuts in production resulted in a significant rally in oil prices, with Brent trading as high as $56 per barrel in February.
Brent crude fell 1.8% at $47.49 a barrel, while U.S. crude dropped 2.1% to $44.58 a barrel. Oil prices stabilized in Asian trading Friday after hitting a five-month low while regional stock benchmarks headed lower in holiday-thinned trading.
USA crude output is at its highest since August 2015 as shale explorers intensify drilling.
Others, as quoted by the BBC, see the drop as an indication of "jittery" markets ahead of OPEC's May 25 meeting when an extension of the original cut agreement will in all likelihood be announced.
"The market appears to have temporarily lost faith in ever seeing an impact of the OPEC cuts on inventories", Michael Cohen, head of energy commodities research at Barclays Plc in NY, said by telephone.
Holmes, Stanley lead Players, Garcia four back
Among those at 4 under was Jon Rahm of Spain, who couldn't get going because of bogeys that followed birdies and led to a 74. He saved par from the back bunker on the 18th hole for a 72. "I think anybody who makes the cut has a really good shot".
Fears are growing that Opec and non-Opec producers' reductions are not doing enough to curb output as USA stockpiles grow while the country's shale gas production rockets.
"Weekly U.S. government data on Wednesday showed crude stocks fell 930,000 barrels, less than half the 2.3 million barrel drop analysts had expected".
"On the other hand, the refusal to reduce oil production will lead to price slump to $40 a barrel", Yakushev added.
Another driver for the weakness in the oil markets has been a disappointing appetite for gasoline in the U.S.
However the latest Reuters survey of OPEC production showed the country's compliance had fallen slightly.
8-year-old was bullied before killing himself, attorneys say
At the time, officials at Carson Elementary School told her there was no evidence of bullying and that Gabe has simply fainted. Eric Karaguleff , a veteran Cincinnati homicide detective who watched the video, composed a timeline for 18 minutes of video.
- Tottenham a bigger draw to world-class talent than Arsenal, admits Ian Wright
- Saracens: Mark McCall says double European champions can get even better
- Fernando Alonso: McLaren driver says Honda are risking reputation
- Tories take traditional Labour strongholds as Ukip collapses in local vote
- Frankie Edgar Breezes Past Yair Rodriguez With Doctor Stoppage
- Armed inmate killed, hostage rescued at hospital
- Myles Garrett laughs off Bruce Smith's criticism
- 3 measles cases in Crow Wing County bring Minnesota total to 54
- Judge refers theft allegations against Uber to US Attorney
- Miley Cyrus Malibu: Singer flashes bare boobs in braless display