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Crude Oil Futures Sink on Global Glut Concerns, WTI Crude Below $50

December 17, 2018 at 22:16 by Vladimir Vyun

Futures for crude oil attempted to rally during the Monday’s trading session, but failed, and ended the session with huge losses. US crude fell below the $50 mark and was trading at the lowest level in more than a year. Market analysts explained the sharp drop by a report from industry data provider Genscape, which showed an increase of crude oil inventories in Cushing, Oklahoma, the major delivery hub for US oil. The news reignited fears that the OPEC+ production cuts may be not enough to erase global glut of the commodity.

The US Energy Information Administration will release its official report on inventories of crude on Wednesday. Analysts polled by Reuters predicted that the report will show a decrease of 2.5 million barrels last week. If that is indeed the case, it will be the third weekly decline in a row.

Futures for delivery of WTI crude oil in January sank as much as $4.04 to settle at $49.13 per barrel on NYMEX today. February contract for crude tumbled 2.57% to $58.73 per barrel on ICE.

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