Oil Tumbles Amid Oversupply Fears, Unlikelihood Of Deeper OPEC Cuts



U.S. equities also were lower, with losers led by the energy sector, which fell 2.24 percent to its lowest since August.

Late last year, OPEC and other producing countries announced production cuts of 1.8 million barrels per day for the first six months of this year.

Even so, McGillian said, "We still have a near record overhang and signs of increasing production in areas of the world outside the producers that agreed to the cuts."

Crude output has surged in the United States, with increasing rig counts for the past 11 months.

Russia's energy minister, Alexander Novak, said in written comments on Thursday that his country is inclined to extend its cuts.

But many in the market believe steeper cuts are needed to reduce the glut significantly.

"At some point, the market should recognize OPEC isn't the most important player in the market any more," said Commerzbank's Eugen Weinberg, "That is non-OPEC, and, above all, U.S. shale."

(Additional reporting by Amanda Cooper in London, Naveen Thukral in Singapore; Editing by David Gregorio and Steve Orlofsky)

Copyright 2017 Thomson Reuters.


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