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Crude Oil Extends Losses, WTI Crude Falls Below $48

December 18, 2018 at 18:32 by Vladimir Vyun

Prices for crude oil continued to sink today, extending yesterday’s losses, with the West Texas Intermediate grade falling below the $48 level. It seems fears of global glut and slowdown of word’s economic growth overshadowed whatever bullish factors oil had.

The Organization of Petroleum Exporting Countries and several nonmember allies agreed last week to cut oil production to support prices. But some of the members of the pact, most notably Russia, were increasing their output, not decreasing. And that on top of increasing supply from the United States. That is because the agreement will take effect only in January, giving the participants time to ramp up production before cutting it. With that said, Russian Energy Minister Alexander Novak promised that Russia’s oil production should fall next year. If that is the case, that will be the first yearly decline after a decade of growth.

Contract for delivery of WTI crude oil in January slumped 4.85% to $47.46 per barrel as of 18:15 GMT on NYMEX today after sinking more than 5% earlier during the current trading session. February contract for Brent crude tanked 3.72% to $57.39 per barrel on ICE.

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