Highlight:
Global crude prices declined on Thursday after Kuwait’s oil minister said OPEC has little choice but to keep production steady, raising fresh concerns about an oversupplied energy market.
Brent crude tumbled 2.4 percent to $54.64 a barrel. The global benchmark had rallied more than $2 on Wednesday after a broad US dollar selloff in the wake of a cautious Federal Reserve policy statement. The dollar experienced its biggest single-day plunge in six years, but has since recovered most of its losses.
West Texas Intermediate (WTI) for April delivery also declined, falling 1.9 percent to $43.50 a barrel.
Oil prices were under pressure on Thursday after Kuwait’s oil minister said OPEC would keep production steady.
“We don’t want to lose our share in the market,” Ali al-Omair said, echoing the cartel’s decision last November to maintain production levels despite falling prices.
Free Reports:
Global output is expected to slow eventually as very low price points squeeze the market. In the meantime, however, production remains at record-high levels. Earlier this week the Energy Information Administration said US crude inventories rose to a new record high last week for the tenth consecutive week. The global supply glut has lowered the outlook on WTI to $40 a barrel in the short-run.
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