Crude oil dropped to a five-year low after the United Arab Emirates said OPEC wont rein in production in response to the slump.
The
Organization of Petroleum Exporting Countries will refrain from curbing
output even if prices fall as low as $40 a barrel, U.A.E. Energy
Minister Suhail Al-Mazrouei said. Prices have fallen about 20 percent to
the lowest in five years since OPEC decided against cutting production
to tackle the glut at a Nov. 27 meeting. The group has pumped more than
its output target of 30 million barrels a day for the last six months.
Oil
fell into a bear market this year amid the highest U.S. production in
three decades and slowing growth in global consumption. Futures
rebounded earlier today on signs that output will decrease in Libya and
Nigeria, which are responsible for about 9 percent of OPEC production.
West
Texas Intermediate for January delivery declined 84 cents, or 1.5
percent, to $56.97 a barrel at 10:25 a.m. on the New York Mercantile
Exchange. Futures touched $56.25 earlier, the lowest level since May
2009. Total volume was 67 percent above the 100-day average for the time
of day.
Brent
for January settlement slipped 23 cents to $61.62 a barrel on the
London-based ICE Futures Europe exchange. The North Sea crude earlier
slumped to $60.28, the least since July 2009. Volume was near the
100-day average. The European benchmark traded at $4.67 a barrel premium
to WTI.
Source: Bloomberg
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