Published November 23, 2018, 10:00
PM
SINGAPORE (Reuters) – Oil prices
slumped to 2018 lows on Friday in thin but volatile trading, pulled down by
concerns of an emerging global supply overhang amid a bleak economic outlook.
Even an expectation that the
Organization of the Petroleum Exporting Countries (OPEC) producer group will
start withholding supply in 2019 to rein in any glut provided little support,
traders said.
International benchmark Brent crude
oil futures hit their lowest since December 2017 at $61.52 per barrel, before
recovering to $62.10 by 0430 GMT. That was still 50 cents, or 0.8 percent below
their last close.
US West Texas Intermediate (WTI)
crude futures slumped by more than 2 percent, to $53.35 a barrel, after coming
within 5 cents of an October 2017 low reached earlier in the week.
Amid the plunge, Brent and WTI price
volatility has surged in November to approach levels not seen since the the
market slump of 2014-2016 and, before that, the financial crisis of 2008-2009.
The divergence between US and
international crude comes as surging North American supply is clogging the
system and depressing prices there, while global markets are somewhat tighter –
in part because of reduced exports from Iran due to newly imposed US sanctions.
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