Oil price extends drop to 7 month lows, despite OPEC cuts

By The Associated Press

Oil prices are falling further to a new seven-month low, with the international benchmark for crude sliding below $46 a barrel.

 

LONDON (AP) — Oil prices are falling further to a new seven-month low, with the international benchmark for crude sliding below $46 a barrel.

That is just above the price seen in November, when OPEC and 10 other oil-producing countries agreed to cut their production to combat a growing supply glut.

While Russia, Saudi Arabia and other nations involved in the deal have met their targeted cuts, an unforeseen increase in U.S. supply has countered these efforts. With the glut persisting, the outlook for oil prices has been dampened.

Analysts at Commerzbank predict that persistent negative investor sentiment about oil prices could push the international benchmark, Brent, below $45 per barrel.

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