Brent Crude Drops Below $50 After Russian Comments, Sliding Demand Forecast

Tyler Durden's picture

For the first time since mid-March, Brent Crude prices tumbled below $50 after Russia said no decision had been made yet on extending the oil output cut production deal. This came after the 11th weekly rise in US crude production and concerns from JBC that oil demand is declining rapidly.

Russia Says No Decision Yet on Extending Oil Output Cut W/ OPEC - Russia will make announcement if decision is taken, Kremlin spokesman Dmitry Peskov tells reporters on conference call.

US Crude production rose once again to August 2015 highs...

 

And demand forecasts are tumbling:

 

Andf the result... Brent back below $50...

A further decline to below $49.71/bbl would take Brent to lowest since Nov. 30, day of OPEC meeting where group decided on production cuts strategy. For WTI, a drop to below $47.01/bbl would take commodity to lowest since same date.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
BorisTheBlade's picture

No deal on supply cuts and new vehicle sales are tumbling. Should make for a bumpy ride this year in crude.

NoDebt's picture

OPEC:  "Wait here for oil production cuts.  If I'm not back in 10 minutes.... just wait longer."

"Also, did we mention that we're selling a 5% stake in ARAMCO in a few months?  Yeah, you gotta get you some of that.  We're valuing it at a trillion dollars.  You're going to make a forture.  Trust us."

 

 

A. Boaty's picture

Maybe sale of that stake in ARAMCO will reveal how much oil they have in the ground.

_RRR_'s picture

they will sell you colored water for oil if they have to

south40_dreams's picture

Wake me up when it falls below $30

pc_babe's picture

Time again to load up on corn ... ethanol blends make great fuel for my Tesla

Dragon HAwk's picture

Revolutionary technology now allows twice the amount of oil to be stored in a single holding tank.  Markets Explode Higher

mo mule's picture

Oil should be $14.bl and maybe it will get there at some point. At least that's what my long term Fib charts are showing.  They are lying to us. They are so over supplied it will take years or a war to work all the extra off.  Which comes first, war or $14 a barrel?   WW 3 to start soon with NK, Russia, and the US? How nice?   haha!  

strangeglove's picture

Wait wha

Summer driving season, switch blend or something get the price up we can't give these people a break, any hurricanes out there something throw us a bone Donald

Says T B Pickens

mo mule's picture

Yes...........Never give a sucker a break and never clue in a pasty.

 W.C. Fields...

John Law Lives's picture

Que some angry sheikh to launch a rumor that a "production cut" is imminent...

Sapere aude's picture

U.S. Now how can we drop the price of oil so that we get cheap oil for the driving season?

Ah, I know we can come up with more bull about increased profits and lower cost production, ignore decline rates and legacy wells and get old Tyler to put a few stories out along with the mainstream media

That should do it.