The Address | Benghazi – Libya
NEW YORK – Oil prices fell about 2 percent on Thursday, extending recent weakness on concerns over surging U.S. crude production and slack global demand, particularly in light of the ongoing trade dispute between the United States and China.
Brent crude oil futures LCOc1 were down $1.06, or 1.7 percent, to $60.26 a barrel by 11:03 a.m. EST (1603 GMT). U.S. crude futures CLc1 fell $1.00 to $51.31 a barrel, off 1.9 percent.
The Organization of the Petroleum Exporting Countries (OPEC) in its monthly market report cut its forecast for the average demand for its crude in 2019 to 30.83 million bpd, down 910,000 bpd from the 2018 average. [OPEC/M]
OPEC said its output fell 751,000 barrels per day in December, suggesting it was on its way to fulfilling terms of a pact to cut production between those nations and other producers, including Russia.
Even as OPEC and allied exporters cut production, however, U.S. output has surged close to 12 million bpd in the latest week, and some traders and investors are concerned that growth in global supply this year will outpace demand.