Supply overhang casts a long shadow over oil prices
Brent slumps in thin but volatile trading, pulled down by concerns of an emerging global supply overhang amid a bleak economic outlook
Singapore — Oil prices slumped to 2018 lows on Friday in thin but volatile trading, pulled down by concerns of an emerging global supply overhang amid a bleak economic outlook. Even an expectation that producer cartel Opec will start withholding supply in 2019 to rein in any glut provided little support, traders said. International benchmark Brent crude oil futures hit their lowest since December 2017 at $61.52 a barrel, before recovering to $62.10 by 4.30am GMT. That was still 50c, or 0.8% below their last close. US West Texas Intermediate (WTI) crude futures slumped by more than 2%, to $53.35 a barrel, after coming within 5c of an October 2017 low reached earlier in the week. Amid the plunge, Brent and WTI price volatility has surged in November to approach levels not seen since the market slump of 2014-2016 and, before that, the financial crisis of 2008-2009. The divergence between US and international crude comes as surging North American supply is clogging the system and depres...
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