Oil Trades Near 6-Year Low as OPEC Fails to Turn Focus From Glut - Bloomberg

Oil Trades Near 6-Year Low as OPEC Fails to Turn Focus From Glut - Bloomberg:



"Oil extended losses to trade near an almost six-year low as OPEC’s warning that prices may surge without new investment in production failed to shift the market’s focus from more immediate signs of a global supply glut.



Futures fell as much as 0.6 percent in New York. A spike to $200 a barrel is possible without adequate spending for the long term, OPEC Secretary-General Abdalla El-Badri said. U.S. crude inventories probably rose to 402.1 million barrels last week, the most in records dating back to August 1982, a Bloomberg News survey shows before a government report on Wednesday.



Oil slumped almost 50 percent last year amid the fastest pace of U.S. crude production in more than three decades while the Organization of Petroleum Exporting Countries resisted calls to reduce output. Prices may drop to as low as $30 a barrel, Gary Cohn, the president of Goldman Sachs Group Inc., said in an interview with CNBC on Monday."



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