Oil Slides as Saudi Naimi Tells Market to Forget OPEC Cuts
Crude at below $60 has pushed various oil drillers to pare spending on exploration in 2015 and delay, even cancel, drilling projects. Some analysts think the industry has to do more to ensure steady price recovery.
"We have found that in the past, it has taken approximately 100 days after the market has bottomed to start a sustainable rally," Macquarie Capital's Vikas Dwivedi said in a note.
"We believe enough upstream capital spending cuts are under way around the world to allow the oil market to rebalance but probably not until early 2016."
Gasoline also tumbled, wiping out nearly all of Friday's 2 percent gain, which was its best since October.
Heating oil performed relatively better, losing just about 0.6 percent, as rival natural gas plunged more than 9 percent to 22-month lows. Recent strength in ultra-low sulfur diesel was also supportive to heating oil, traders said.
(Additional reporting by Simon Falush and Ahmed Aboulenein in London; Editing by Jason Neely, David Evans and Richard Chang)
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