“The bottom line here is you have wide compliance within OPEC with the production cuts and on the other hand you have increased production out of the US,” Hans Goetti, chief strategist for the Middle East and Asia at Banque Internationale a Luxembourg, said in a Bloomberg television interview. “The shale oil industry in the US has made great strides to cut costs.”
Oil price drops below $50 per barrel for first time since December as US glut continues
Oil dropped below $50 (£41.15) for the first time since December after concerns that OPEC's output cuts aren’t tempering a surplus in the US triggered the biggest slump in more than a year. Futures dropped as much as 2.2 per cent in New York to $49.20 after losing 5.7 per cent the previous three sessions. Stockpiles rose 8.2 million to the highest level in weekly government data since 1982.
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