Crude prices settle at lowest level since November
Crude settled more than 2% lower on Thursday as growing U.S. crude inventories to record levels weighed on sentiment.
Crude futures sustained a second straight day of losses amid fears record U.S. crude inventories would dampened The Organization of Petroleum Exporting Countries (OPEC) efforts to rebalance supply and demand.
Despite OPEC’s high level of compliance with agreed production cuts last November, U.S. crude oil stockpiles rose to an all-time high of 528.4 million barrels for the week ended March 1, the Energy Information Agency (EIA) said Wednesday.
OPEC began implementing cuts of 1.16 million barrels per day at the start of this year for a period of six months, after its members and other exporters agreed to cut output by about 1.8 million barrels per day (bpd) in an effort to combat the oversupply issue that has pressured prices over the last two years.
Oil prices have slipped away from a narrow $3 trading range and are on course for their worst week since the OPEC deal in November.
Meanwhile, market participants turn attention to Baker Hughes rig count, due to be released on Friday at 13:00 ET.