Oil extends losses to three-month lows, tests slide

By Jessica Resnick-Ault | NEW YORK Oil prices were steady to soft after touching three-month lows on Monday, testing a slide that began last week when the market became less optimistic that OPEC’s efforts to restrict output would reduce a global oil glut amid swelling U.S. supplies. Prices have fallen by more than 8 percent since last Monday, its biggest week-on-week drop in four months, and analysts said the slide may not have much further to run. After more than two months of reduced production from the Organization of the Petroleum Exporting Countries, the market is facing evidence that U.S. production remains high and global markets remain oversupplied. “There is growing skepticism that the production cut has been enacted long enough to take care of the overhang,” said Gene McGillian, director of market research at Tradition Energy. “The longs who piled in last year are turning on the market because there seems to be a realization that a six-month agreement isn’t long enough to rebalance the market. Brent crude futures LCOc1 fell 6 cents to $51.31 a barrel by 1:30 p.m. Eastern (1730 GMT), having earlier hit a session low of $50.85, the lowest level since Nov. 30. U.S. West

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Source: CTRM Center

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