“Oil hits five-month low amid warnings of commodities rout”

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Source: the guardian.com 05.05.2017

“Oil prices have fallen sharply along with other commodities as the prospect of slowing growth in the US and China blunts optimism about the global economy.

Oil prices plunged to five-month lows on Thursday amid record trading volume in Brent crude, as Opec and other producers appeared to rule out deeper supply cuts to reduce the world’s persistent glut of crude.

“While Opec is expected to extend a self-imposed production cap by another six months, it will be a challenge to convince several non-Opec members to follow suit,” said Abhishek Kumar, senior energy analyst at Interfax Energy. “Persistent growth in US oil production … will also make extensions of the Opec cap beyond 2017 unlikely.”

“At some point, the market should recognize Opec isn’t the most important player in the market any more,” said Commerzbank’s Eugen Weinberg, “That is non-Opec, and, above all, US shale.””

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