Oil prices continue to slide as supply overhang prevails
Oil prices continued to slide on Friday, adding to sharp declines from earlier this week as evidence mounted that a fuel supply overhang continued despite an ongoing effort led by OPEC to tighten the market by holding back production.
Brent crude futures LCOc1 were trading at $47.67 per barrel at 0039 GMT, down 19 cents, or 0.4 percent, from their last close. That puts Brent 12 percent below its opening level on May 25, when an OPEC-led policy to cut oil output was extended to cover the first quarter of 2018.U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $45.44 per barrel, down 20 cents, or 0.44 percent, from their previous close. They are down over 11 percent from May 25.
Traders said the price slump was a result of ongoing oversupply despite the pledge led by the Organization of the Petroleum Exporting Countries (OPEC) to cut almost 1.8 million barrels per day (bpd) of production until the first quarter of 2018.In the United States, official Energy Information Administration (EIA) data showed a surprise build in commercial crude oil stocks to 513.2 million barrels this week C-STK-T-EIA
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