Oil declined to the minimum since 2008 working in london amid estimates that OPEC’s decision to effectively scrap production targets will keep the market oversupplied.
Brent futures declined as much as 2.1 percent for a sixth consecutive loss.?The global surplus will persist a minimum of until late 2016 as demand growth slows and the?Organization of Petroleum Exporting Countries shows “renewed determination” to maximize production, the International Energy Agency said Friday. The audience chose not to curb output at its Dec. 4 meeting.
Oil?prices have slumped to levels last seen throughout the global financial trouble because of?OPEC’s strategy to defend share of the market against higher-cost producers. The group’s production rose to a three-year high in November, it said in a report Thursday, as surging Iraqi volumes more than offset a pullback by Saudi Arabia.
“Too much oil has been produced right now,” analysts at Commerzbank AG led by Eugen Weinberg in Frankfurt said inside a report. “There is unlikely to be any type of ‘happy ending’ for oil prices this season.”