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Oil slumps to near seven-year low on OPEC inaction, dollar

Oil&Gas Materials 7 December 2015 23:52 (UTC +04:00)
Crude oil futures tumbled to their lowest in nearly seven years on Monday after OPEC failed to address a growing supply glut, while a stronger dollar made it more expensive to hold crude positions
Oil slumps to near seven-year low on OPEC inaction, dollar

Crude oil futures tumbled to their lowest in nearly seven years on Monday after OPEC failed to address a growing supply glut, while a stronger dollar made it more expensive to hold crude positions, Reuters reported.

Brent and U.S. crude futures fell as much 5 percent in belated reaction to the Organization of the Petroleum Exporting Countries' (OPEC) policy meeting on Friday which ended without an agreement to lower production.

For the first time in decades, OPEC oil ministers dropped any reference to the group's output ceiling, highlighting disagreement among members about how to accommodate Iranian barrels once Western sanctions are lifted.

U.S. crude's West Texas Intermediate (WTI) futures CLc1 were down $2.02 at $37.95 a barrel by 12:42 p.m. EST (1642 GMT). WTI's session low of $37.88 was barely above the 6-1/2 year bottom of $37.75 in August.

WTI forward contracts out to 2024 dropped below $60.

Brent futures LCOc1 fell $1.96 to $41.05, after sliding to$40.95, their lowest since March 2009.

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