Crude oil dives more than 25% after peaking in early October
West Texas Intermediate (WTI) crude for January delivery plunged $4.21 to settle at $50.42/barrel on Friday, its lowest finish level since October 2017. January Brent crude futures similarly shed $3.80 to close at $58.80/barrel on ICE Europe.
The latest drop was partly driven by weaker trading activity, as the US commodity markets were closed for the Thanksgiving holiday. Meanwhile, the latest inventory data from the Energy Information Administration (EIA) showed that the monthly US oil production surpassed 11 million barrels/day for the first time in August. Economists argued that this also played a role in the most recent losses, sparking fears of oversupply.
OPEC and non-OPEC members meeting in Vienna on December 6 are expected to cut oil production in an attempt to halt price falls in the energy complex.
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