Crude prices extended losses to a five-week low on Wednesday as the American Petroleum Institute reported an increase of 9.3 million barrels in US inventories, more than nine times the amount analysts predicted.

North Sea benchmark Brent was down 75 cents trading at $47.39 per barrel, more than 10 percent below its peak last month. US benchmark West Texas Intermediate was down 76 cents at $45.91, showing the same extent of decline since October.

Traders say oil prices could plunge even further on growing US stockpiles and increasing skepticism about a joint output cut from the Organization of the Petroleum Exporting Countries (OPEC).

"Those who were hoping for some upside from any sort of production agreement appear to have their hopes dashed. It looks like there are speculative longs quitting the market," said Ric Spooner, chief market analyst at CMC Markets in Sydney.

In September, OPEC leaders informally agreed to cut the cartel’s production, possibly by 200,000 to 700,000 barrels per day. The aim was to prop up prices by removing some unwanted barrels from the market.

This helped to build up prices in the short term, but with more OPEC members seeking exemptions from the production cuts, the deal, even if signed, may be too weak to cut the glut and overall production will still grow.

“The market is moving into the stage of show me rather than tell me or talk about it. There has been a month of comments from just about every member of OPEC and yet nothing concrete has been released to provide market participants with any degree of confidence,” said Dominick Chirichella from the New York-based Energy Management Institute.

https://www.rt.com/business/365067-oil-prices-continue-fall/

more Job cut roams...................... Allah this country must diversify into other things but not cultivating rice........... we needed to import rice to add to what we can produce........... hungry everywhere

Another excuse for PMB to feed his gullible zombies

alienvirus:
Crude prices extended losses to a five-week low on Wednesday as the American Petroleum Institute reported an increase of 9.3 million barrels in US inventories, more than nine times the amount analysts predicted.

North Sea benchmark Brent was down 75 cents trading at $47.39 per barrel, more than 10 percent below its peak last month. US benchmark West Texas Intermediate was down 76 cents at $45.91, showing the same extent of decline since October.

Traders say oil prices could plunge even further on growing US stockpiles and increasing skepticism about a joint output cut from the Organization of the Petroleum Exporting Countries (OPEC).

"Those who were hoping for some upside from any sort of production agreement appear to have their hopes dashed. It looks like there are speculative longs quitting the market," said Ric Spooner, chief market analyst at CMC Markets in Sydney.

In September, OPEC leaders informally agreed to cut the cartel’s production, possibly by 200,000 to 700,000 barrels per day. The aim was to prop up prices by removing some unwanted barrels from the market.

This helped to build up prices in the short term, but with more OPEC members seeking exemptions from the production cuts, the deal, even if signed, may be too weak to cut the glut and overall production will still grow.

“The market is moving into the stage of show me rather than tell me or talk about it. There has been a month of comments from just about every member of OPEC and yet nothing concrete has been released to provide market participants with any degree of confidence,” said Dominick Chirichella from the New York-based Energy Management Institute.

https://www.rt.com/business/365067-oil-prices-continue-fall/

I read an article some time ago and this is what the analyst talked about; US as a non OPEC member would frustrate any plan by OPEC to make sure oil price gains weight at the intl market. As long as US' shale oil keeps coming, cutting production by OPEC will never be a lasting solution.

SamuelAnyawu:
Another excuse for PMB to feed his gullible zombies

Another excuse to absolve GEJ from blames.

This is a grim situation that needs someone well versed in economics workings at such a time like this. Definitely Nigeria will be hard hit because we have a funny President still chasing shadows with empty promises in the face of real hardship killing the masses. One can only imagine what will be the prices of commodities in the coming weeks if this despot will not quickly open borders to bring in foods to supplement our insufficient home grown ones.