Crude oil futures tanked around 4 per-cent in the native market on Friday last week as investors and speculators resorted to heavy selling after the OPEC, the cartel that accounts for around 40 per-cent of world wide crude supplies, refused to curb production to alleviate a supply glut.
At vienna, Austria on Friday last week, the cartel ditched its idea of limiting outcome to control prices. Instead, the cartel went for a Saudi Arabia-led policy of pumping oil at continued high rates to squeeze out rivals including US shale drillers, to regain market shares.
The cartel set aside its daily production target of 30 million barrels each day, which many members had previously ignored as they were manufacturing close to 31.5 million barrels per day. OPEC has set a production target almost without fail since 1982.
The OPEC verdict overshadowed a 3rd straight drop in US rig count, which signaled lower US production, going ahead. Baker Hughes reported that the number of US rigs drilling for oil fell by 10 to 545 last week.
Strength in the US labour market bolstered hopes of a pickup in oil requirement in the world’s biggest oil consumer as US jobs data trumped expectations. The world’s largest economy contributed 211,000 jobs in November as the jobless rate stayed at over a seven-year low of 5 per-cent while October’s payrolls gain was upwardly revised to 298,000. Moreover, US trade gap widened 3.4 per-cent to US dollars 43.9 billion in September amidst weaker overseas sales.
At vienna, Austria on Friday last week, the cartel ditched its idea of limiting outcome to control prices. Instead, the cartel went for a Saudi Arabia-led policy of pumping oil at continued high rates to squeeze out rivals including US shale drillers, to regain market shares.
The cartel set aside its daily production target of 30 million barrels each day, which many members had previously ignored as they were manufacturing close to 31.5 million barrels per day. OPEC has set a production target almost without fail since 1982.
The OPEC verdict overshadowed a 3rd straight drop in US rig count, which signaled lower US production, going ahead. Baker Hughes reported that the number of US rigs drilling for oil fell by 10 to 545 last week.
Strength in the US labour market bolstered hopes of a pickup in oil requirement in the world’s biggest oil consumer as US jobs data trumped expectations. The world’s largest economy contributed 211,000 jobs in November as the jobless rate stayed at over a seven-year low of 5 per-cent while October’s payrolls gain was upwardly revised to 298,000. Moreover, US trade gap widened 3.4 per-cent to US dollars 43.9 billion in September amidst weaker overseas sales.
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