Oil's Rollercoaster Ride: Crude Soars and Slumps in One Month - Bloomberg

Oil's Rollercoaster Ride: Crude Soars and Slumps in One Month - Bloomberg:

In the space of about a month, oil has gone from riding a rocket toward $100 to slumping into a bear market.

Futures fell 1.6 percent Thursday in New York, extending a decline from its October high to 21 percent. A further drop Friday would make it the longest-ever streak of losses. Oil’s retreat has increased pressure on OPEC and its allies to cut supply just months after adding barrels. U.S. crude production is accelerating, OPEC output is the highest in years and waivers will allow some Iranian crude exports despite U.S. sanctions.

“Sentiment has shifted,” said Bart Melek, head of global commodity strategy at TD Securities in Toronto. “OPEC has put on more crude than we thought and second of all, these waivers are becoming an impediment to price support.”