Tags: APFN | EU | Oil Market

Oil Price Extends Drop to 7 Month Lows, Despite OPEC Cuts

Wednesday, 21 June 2017 10:39 AM EDT

LONDON (AP) — Oil prices fell further to a new 7 month low on Wednesday, with the international benchmark for crude sliding below $46 a barrel.

That is just below the price seen in November, when OPEC and 10 other oil-producing countries agreed to cut their production to combat a growing supply glut and push the market up.

While Russia, Saudi Arabia and other nations involved in the deal have met their targeted cuts, an unforeseen increase in U.S. supply has countered these efforts. With the glut persisting, the outlook for oil prices has been dampened.

"As we see it, it is not the events that are putting pressure on prices, but above all the shift in sentiment, the previous optimism appearing to have virtually evaporated," analysts at Commerzbank wrote in a note to clients. They predict persistent negative sentiment could push the international benchmark, Brent, below $45 per barrel.

On Wednesday, it was down 8 cents at $45.94 a barrel in London trading.

The increased supply has been met with a "disappointing of late" demand for oil within the U.S. A recent report from the International Energy Agency predicted next year's increase in output by non-OPEC countries will be slightly higher than the increase in global demand.

Last week, OPEC countries and a group of other oil-producing nations, led by Russia, agreed to extend the cuts by nine months until next March.

© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Europe
Oil prices fell further to a new 7 month low on Wednesday, with the international benchmark for crude sliding below $46 a barrel.That is just below the price seen in November, when OPEC and 10 other oil-producing countries agreed to cut their production to combat a growing...
APFN,EU,Oil Market
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2017-39-21
Wednesday, 21 June 2017 10:39 AM
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