Oil Drops to Five Month Low Despite OPEC Production Cut Deal

Oil fell to its lowest since late November on Thursday, as concern over rising global supply and stubbornly high inventories effectively wiped out most of the gains made since OPEC announced its first supply cut in eight years.

Brent crude oil futures were down $1.19, or 2.3 percent, at $49.60 a barrel by 9:39 a.m. (1339 GMT), also striking a new low going back to Nov. 30.

U.S. West Texas Intermediate (WTI) crude futures were down $1.25, or 2.6 percent, at $46.57 a barrel, dropping below the previous 2017 low to the weakest level since Nov. 30.

The Organization of the Petroleum Exporting Countries, together with major rivals such as Russia and Oman, announced on Nov. 30 that they would cut oil output for the first six months of this year to eat into a vast global overhang of unused crude.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza