Oil in London Dips Below $50 as Market Chaos Counters OPEC+ Cuts - Bloomberg

Oil in London Dips Below $50 as Market Chaos Counters OPEC+ Cuts - Bloomberg:

Oil in London fell below $50 a barrel for the first time since July 2017 as broader financial market turmoil and worries over U.S. supply countered signs the OPEC+ coalition may extend or deepen output cuts.

Futures fell as much as 1.1 percent, after Monday’s 6.2 percent drop. Russian Energy Minister Alexander Novak tried to reassure investors, saying the market will be more stable in the first half of 2019 due to the deal between OPEC and its allies to cut output, and that producers will react if the situation changes. Meanwhile, S&P 500 Index futures fluctuated Wednesday while the benchmark U.S. gauge is at the brink of sliding into a bear market.

Oil has plunged more than 40 percent from a four-year high in October on the prospect of a supply glut. While the Organization of Petroleum Exporting Countries and its allies including Russia agreed to cut output early this month, investors are skeptical the reductions will be sufficient to dent supplies, with U.S. producers pumping near a record. At the same time, President Donald Trump’s trade war with China and the Federal Reserve’s policy on interest rates have clouded the outlook for global economic growth.