Crude slides after OPEC-led output cut extension sags below expectations

Crude slides after OPEC-led output cut extension sags below expectations

On Friday, crude extended dips, having declined in the previous session when OPEC along with allied producers extended output dips. Disappointed traders bet on longer or larger supply curbs.

At Thursday's gathering in Vienna, OPEC as well as some non-OPEC producers agreed to extend a promise to cut approximately 1.8 million barrels per day until the end of the first quarter of next year. As for the initial agreement, it would have expired in June 2017.

Crude sank 5%, reacting to the announcement, and also held its losses.

Brent crude futures reached $51.26 per barrel, sliding 0.4% from their previous close.

American West Texas Intermediate crude futures hit $48.61, descending 0.6%.

Britain's Barclays bank told that the everlasting output cut would generate a drawdown of bloated fuel inventories, though added that OPEC's objective of bringing stocks down to their five-year average wouldn’t be achieved within the timeframe of the output cut.

 

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