Oil prices continue to weaken as global glut grows

By Peter Stewart 21 June 2017
  • Twitter logo
  • LinkedIn logo
  • facebook logo
  • Email logo
The Foster Creek oilsands project in Alberta, Canada. The global oil supply glut shows no signs of abating soon. (Cenovus) The Foster Creek oilsands project in Alberta, Canada. The global oil supply glut shows no signs of abating soon. (Cenovus)

International benchmark Brent crude oil futures dropped as low as $45.4 per barrel on Tuesday – their lowest level since November 2016 – and dropped to similar levels early on Wednesday before recovering slightly. The United States benchmark West Texas Intermediate dropped to $42.8/bbl on Tuesday and was trading at around $43/bbl at the time of publication.

OPEC members and a group of 11 non-OPEC producers led by Russia agreed on 25 May to extend their 1.8 million barrels per day (MMb/d) output cut for a further nine months. The original deal was for cuts of 1.2 MMb/d by OPEC members and nearly 600,000 b/d by non-OPEC countries to be made during the first six months of 2017. This was initially in effect until the end of June 2017, but now the cuts have been extended until the end of March 2018.

Log in or register for a free trial to continue reading this article

Already a subscriber?

If you already have a subscription, sign in to continue reading this article.

Sign in

Not a subscriber?

To access our premium content, you or your organisation must have a paid subscription. Sign up for free trial access to demo this service. Alternatively, please call +44 (0)20 3004 6203 and one of our representatives would be happy to walk you through the service.

Sign up