Less than a week after Opec and Russia agreed to extend their production cut agreement to tackle a supply glut, Brent crude has fallen back below the $50 a barrel level.
Brent crude, the global oil marker, fell 3.6 per cent to $49.98 a barrel — falling below $50 for the first time since May 10. Meanwhile, West Texas Intermediate, its US counterpart, declined 3.5 per cent to $47.94 a barrel.
The decline came as Saudi Arabia’s oil minister, Khalid al-Falih, renewed a pledge to bring down surplus inventories after meeting with his Russian counterpart Alexander Novak in Moscow on Wednesday.
Sentiment on oil has soured despite a move by Opec and non-member Russia, to extend their output cut agreement to the end of the first quarter of 2018. Markets had hoped that the meeting would have resulted in deeper cuts or that the cuts would have extended beyond 9 months.
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