Oil Tumbles to 5 1/2-Year Low as OPEC Reaffirms Stance - Bloomberg

Oil Tumbles to 5 1/2-Year Low as OPEC Reaffirms Stance - Bloomberg:



"Oil dropped to the lowest level in more than five years on growing evidence that OPEC won’t pare output to reduce a global supply surplus.



Brent and West Texas Intermediate futures capped their seventh straight weekly decrease. The United Arab Emirates has no plans to reduce output no matter how low prices drop, according to Yousef Al Otaiba, the nation’s ambassador to the U.S. Representatives from Saudi Arabia, Kuwait and the U.A.E. stressed a dozen times in the past six weeks that OPEC won’t curb output to halt the rout. WTI’s discount to Brent shrank to its narrowest since October.



“The price war continues and there’s a great deal of excess supply,” Phil Flynn, senior market analyst at the Price Futures Group in Chicago, said by phone. “The statements from the U.A.E. ambassador show that they’re doubling down and taking no prisoners. This will be a long fought war and they have the Saudis behind them.”"



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