Oil dives more than 4 per cent on stubborn glut, under $50/bbl again

Oil dives more than 4 per cent on stubborn glut, under $50/bbl again

Oil slid more than 4 percent on Thursday, to its lowest since late November as investor worries about a growing global glut of crude erased most of the gains that followed last year’s OPEC’s output cut. The slide worsened after OPEC delegates said their group and other producing countries were downplayed the chance of a bigger output when the producers meet on May 25, even though they said the output cuts were likely to be extended.

US crude fell $2.05 or 4.3 percent to $45.77, by 12:08 p.m. (1608 GMT) Brent was down $2.07, or 4.1 percent to $48.71. “The market continues to hunt for a bottom,” said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut. “We’ve dropped to a five month low.” Read more

Credits:financialexpress.com

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