North Sea Brent crude oil on Thursday traded below US$50 per barrel for the first time since late March, weighed down by worries that US production will overwhelm any progress that production cuts by Saudi Arabia and other producers have made in reducing the world oil glut.
Opec is scheduled to meet on May 25 to decide whether to extend the deal for another three or six months. Saudi Arabia’s oil minister, Khalid Al Falih, said he and other Gulf members have agreed to do so if there is consensus among other parties. Russia, the biggest non-Opec contributor to the deal, has cut by more than its pledged 300,000 bpd, its energy minister said on Thursday. But oil traders remain sceptical until there is clear evidence that inventories are declining.
Brent was at $49.42 per barrel in late afternoon trade on Thursday.
amcauley@thenational.ae
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