Oil prices have slid again on Friday, pushing it to three-month lows as investors continued to flee bullish positions on worries that OPEC-led production cuts have not yet reduced a global glut of crude.
U.S. crude has slumped nearly 9 percent since Tuesday’s close, in what would stand as its biggest three-day decline since February 2016.
U.S. crude CLc1 fell 84 cents, or 1.8 percent, to $48.44 a barrel, as of 1:22 p.m. ET (1822 GMT). Brent crude LCOc1 lost 90 cents, or 1.7 percent, to $51.29 a barrel.
Selling appeared to accelerate in the afternoon after U.S. crude fell through the 200-day moving average of $48.68 a barrel.
Prices began to slide earlier this week, after news of another big rise in U.S. crude inventories to record highs. On Friday, oil services firm Baker Hughes reported another weekly increase in the U.S. drilling rig count.
“We have not seen production cuts undertaken by the world’s producers really alleviate the overhang in inventories,” said Gene McGillian, manager of market research at Tradition Energy in Stamford, Connecticut.
Culled from Reuters