Oil Fell to Less than USD 50 a Barrel on a Record US Export

Light crude oil is traded at a price below USD 50 a barrel for the first time in two weeks, as reported strong US exports are raising concerns for global overcapacity, Bloomberg reported. Anna Kitanaka, Bloomberg News commented on the topic.

Last week, US oil exports rose to 1.98 million barrels per day, and oil yield continued to grow for the fourth week in a row, Kitanaka said.

Anna Kitanaka commented that OPEC Secretary General Mohammed Barkindo's statement means returning to the 5-year global oil inventory target, which is the goal of OPEC and the cause of the restrictions. But as we have heard earlier, Putin says these restrictions should be revised as the end date of the restrictions in March approaches, she added.

"There are a lot of people in the market who say that without these restrictions we will see a reduced oil price, so there are plenty of hopes for OPEC to extend the restrictions for at least three to six months next year," said Anna Kitanaka.

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