Oil prices plunge amid further concerns over slowing global economic growth

Oil prices plunge amid further concerns over slowing global economic growth

Oil prices plunge amid further concerns over slowing global economic growth

By Alex Longley OPEC and its allies defied market expectations last week and agreed 1.2 million barrels a day of production cuts for 2019, but crude prices are yet to rally.

US crude futures rose 43 cents to $51.43 a barrel, after earlier rising more than 2 percent to $52.43.

"Recently, due to the political and economic factors, the price of oil has dropped, and the process has got a continuous character", Shahbazov said on December 7 according to Sputnik.

At 0846 GMT, February WTI crude oil is trading $51.04, down $0.16 or -0.31% and February Brent crude oil is at $59.78, down $0.19 or -0.32%.

The Saudi minister noted before the meeting that the oil pumpers are looking for a sufficient cut to balance the market.

Crude futures have lost around a third of their value since early October amid the financial market slump and an emerging oil supply overhang.

After the OPEC plus announcement on Friday of a 1.2 million barrel in production cut, generally in line with expectations of cuts between 1.1 million and 1.4 million following recent plunges in crude oil prices, concerns that the market may still be oversupplied lingered.

From January to September, Azerbaijan exported close to 22 million tons of crude oil worth around $11.6 million, according to the State Statistics Committee, comprising 81 percent of national exports during the same period. According to PVM, investors have pulled almost $50 billion out of the two major crude oil futures contracts since the latest rout started in October. The Kingdom's production in early November probably hit the highest on record, on the back of high customer requests made in early October when the market feared a hefty loss of Iranian supply last month.

"This is a major step forward", said United Arab Emirates' Energy Minister Suhail Mohamed al-Mazrouei, who is also President of the OPEC Conference.

"There are a number of factors to suggest the cuts were deep enough, that we will start to see a resumption to the upside in oil prices, but certainly we don't see oil prices moving up to the $90, $100 level that maybe we could've seen", the analyst said, adding, "We think that the only certainty is uncertainty at the moment".

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