Oil Drops Below $50 on Concern OPEC+ Won't Cut Output Decisively - Bloomberg

Oil Drops Below $50 on Concern OPEC+ Won't Cut Output Decisively - Bloomberg:

Oil dropped below $50 a barrel in New York for the first time in more than a year as traders fretted that OPEC won’t act decisively to clear a resurgent surplus in the global crude market.

All eyes are on this weekend’s G20 summit in Argentina, where Russia’s Vladimir Putin and Saudi Arabia’s Mohammed bin Salman are likely to discuss how to coordinate oil policy, but both leaders have reasons for caution. Shielded by a budget surplus and a weak ruble, Putin said yesterday current prices suit Russia fine. The crown prince, under pressure after the killing of Jamal Khashoggi, can’t afford to alienate President Donald Trump.

Beyond politics, production from Saudi Arabia and America’s shale mean inventories are starting to rise again. U.S. crude stockpiles have now increased for 10 consecutive weeks. OPEC, Russia and other producers are due to meet in Vienna next week to discuss production policy for 2019.