May 4, 2017

WINNING THE WoT:

Oil prices have plunged 15% in 3 weeks (Matt Egan, May 4, 2017, Money)

Renewed fears about the oil supply glut have sent crude prices plunging 15% from their peak in mid-April to $45.52 a barrel on Thursday.

It's the weakest level for oil since November 29, the day before OPEC finalized a deal to slash production in a bid to end the epic oil glut.

The landmark OPEC agreement, the cartel's first cut since 2008, initially sent oil bulls into a frenzy. Crude prices spiked and many predicted a speedy return to $60-plus prices as excess supply would finally be drained.

Flash forward five months and the epic supply glut continues to cast a shadow. A combination of resilient US shale output and surprisingly sluggish demand for gasoline from American drivers has led US stockpiles of oil to remain at historically-high levels.

Posted by at May 4, 2017 3:42 PM

  

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