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Oil drops to lowest since OPEC deal as U.S. crude slips below $50

collected by :kiven Dixter

However, OPEC members face a familiar quandary: their cuts are helping U.S. and other competitors keep those storage tanks full.
OPEC and big producers like Russia agreed in December to reduce…
The brimming U.S. crude inventories that sent oil prices tumbling this week are expected to put pressure on the Organization of the Petroleum Exporting Countries and other producers to extend their historic agreement to cut output.

as declared in

U.S. Oil Inventories Stymie OPEC Production Cuts

Full Show: Bloomberg Daybreak: Americas (03/08)28:55 – Bloomberg Daybreak: Americas hosted by David Westin, Jonathan Ferro, and Alix Steel.
Guests include Sean Darby, chief global equity strategist at Jefferies, U.S. Commerce Secretary Wilbur Ross, Dartmouth College Economics Professor Danny Blanchflower, Barry Bannister, chief equity strategist at Stifel Nicolaus, Frederic Oudea, chief executive officer at Societe Generale SA, and Savita Subramanian, U.S. equity strategist at Bank of America Merrill Lynch.
(Source: Bloomberg)

U.S. Oil Inventories Stymie OPEC Production Cuts*/

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Oil drops to lowest since OPEC deal as U.S. crude slips below $50

Oil drops to lowest since OPEC deal as U.S. crude slips below $50*/

U.S. crude prices fell through the $50 a barrel support level, with market participants unwinding some of the massive number of bullish wagers they had amassed after the deal.
But U.S. drilling has picked up, with producers planning to expand crude production in North Dakota, Oklahoma and other shale regions.
The Permian, America’s largest oilfield, has seen output jump.
“Given that we do expect OECD oil stocks to decline substantially this year helped by the large OPEC cuts and robust global demand growth, we consider the recent drop in crude oil prices to be a good opportunity to enter into bullish option structures,” strategists at Societe Generale said in a note.
Brent and U.S. crude hit respective session lows of $51.50 and $48.59, levels not seen since the OPEC cuts were announced at the end November.

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