Oil drops by almost 8%, despite the fact that the output was cut



[ad_1]

In the week Brent fell 11.3% and WTI fell by 10.8% decline, the biggest one-week drop since January 2016

During the week, Brent fell 11.3% and WTI fell by 10.8%, the biggest one-week drop since January 2016.

PHOTO: FILE

During the week, Brent fell 11.3% and WTI fell by 10.8%, the biggest one-week drop since January 2016.
PHOTO: FILE

BOSTON: Oil prices dropped to nearly 8% on Friday after being sent over a consecutive weekly loss due to fears of declining supply, even though large producers would expect cutting production.

US oil producers led by US producers to grow faster than demand and prevent unused fuel, such as 2015 fuel, the OPEC organization is expected to begin to cut production, but has so far not done so far supporting subsidies that have fallen by more than 20 percent by November by seven weeks intervals.

Prices had risen to the largest one month since the end of 2014. The world's two largest economies and oil consumers, the US-China trade war has been weighed on the market.

Oil will fall at its lowest during the year beyond the global surplus concerns

"Markets are pricing on the economic slowdown – they expect China's trade talks not to go past," Phil Lawnick's analyst Phil Flynn referred to the expected negotiations next week by US President Donald Trump and his Chinese counterpart Xi Jinping at the G20 summit in Buenos Aires.

"The markets do not believe that OPEC will be able to respond quickly enough to offset the downturn in demand," Flynn said. Brent's crude futures fell by $ 3.80 a barrel, or 6.1% to $ 58.80. During the session, the benchmark fell to $ 58.41, the lowest since October 2017. The US West Texas Intermediate Raw (WTI) lost $ 4.21, or 7.7%, trading at $ 50.42, and also the lowest since October 2017.

Serious oil smuggling has not been selected

In post-mediation, the deal continued to decline. In the week, Brent fell 11.3% and WTI fell to 10.8%, which was the biggest one-week decline since January 2016. Market fears of weak demand grew after China announced the lowest gasoline exports over a year after fuel in Asia and globally. Stocks in gasoline have accelerated throughout Asia, while inventories in Singapore, the regional refining center, rose to three months high, while Japanese stocks climbed last week.

Inventories in the US are about 7% higher than a year earlier. Crude production has also risen this year.

Published in The Express Tribune on November 25th, 2018.

Like Business on Facebook, to follow @TribuneBiz Stay on Twitter on Twitter and join the conversation.

[ad_2]

Source link