Oil Drops Below $50 as Record U.S. Exports Seen Flooding Market

5 Oct 2017   Prices

Nationwide exports rise to record 1.98 million barrels a day Crude falls below $50 a barrel for first time in two weeks Oil slid below $50 a barrel for the first time in two weeks as a flood of U.S. crude reignited concerns over a global glut. Futures fell 0.9 percent in New York after a government report showed record U.S. exports at a time when autumn refinery maintenance typically lowers demand. The decline is also likely being spurred by producers rushing to lock in revenue near $50 a barrel with hedging contracts. “There was a need for light, sweet crude. Guess what? U.S. exports are meeting that need and on top of that, crude demand is going down seasonally,” Michael Wittner, the head of commodities research at Societe Generale SA in New York, said by telephone. The market will see “some typical autumn weakness in the coming few […]

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