Oil Falls Anew As OPEC Emergency Meet, Output Cut Ruled Out



Reuters

NEW YORK, Dec 15 (Reuters) - Crude prices plunged further on Monday after OPEC once again said it will not cut oil output despite fears of a glut, and a UAE official opposed holding an emergency meeting of the producer group to support prices.

U.S. crude tumbled almost 5 percent, extending losses after the close to come within two cents of $55 a barrel. Benchmark North Sea Brent fell more than 2 percent, nearing $60 in a rout that also deepened after settlement.

The losses extended last week's selloff that erased 12 percent from U.S. crude and 11 percent from Brent.

Both markets were up in Monday's morning trade in New York before falling by noon, a trend visible in recent weeks.

"It's basically people getting squeezed out via margin calls," said John Kilduff, partner at New York hedge fund Again Capital, said. He noted that weekly data from the Commodity Futures Trading Commission showed many still long on the market despite the six-month long price rout.

In Monday's early trade, Brent was supported by news of loading delays for January cargoes of North Sea Forties crude due to lower-than-expected output.

A production glitch at the Buzzard oilfield in the UK North Sea also helped Brent, as did news that Libya's two biggest oil ports were shut from fighting between armed factions.


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