By Srinivas Chowdary Sunkara // petrobazaar // 26th Nov, 2018.
Crude benchmark futures prices slumped to new lows on Friday. Brent settled down at $58.8 with a fall of $3.8 or 6.1 pct. WTI lost $4.21 or 7.7 % to $50.42 a barrel in the last session. Both the crude markers were on seven weeks, losing the streak after posting above 10 pct weekly loss. Oil prices are down by a fifth in this month alone. Surge in production is the biggest factor that influenced to drive down oil prices to the lowest level over a year.The bearish mood is not only because of oil markets, it goes beyond to trade wars and stronger dollar. A group of OPEC producers including Saudi are expected to push significant production cuts up to 1.4 Mbpd while other members may be pulling in different direction with no cuts or a little.
I heard that U.S is considering the NOPEC bill, targeting to end the cartel influence on oil prices. Is It possible? I dont think, As the industry witnessed most volatile prices during the period of truly free market in the earliest decades of the industry in the 1860s and 1870s. On the assumption of decontrolling, It will be a thankless job as the U.S shale patch will become uneconomical at low prices. Asian markets are in red at the time of reporting . Have a good day.
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