Oil Sell-Off Is Deepest to Follow an OPEC Output Cut in a Decade - Bloomberg

Oil Sell-Off Is Deepest to Follow an OPEC Output Cut in a Decade - Bloomberg:

Crude’s recent sell-off is a grim reminder that OPEC’s management of the oil market isn’t foolproof. The group’s Dec. 7 decision to curb output among members and allied producers was supposed to prop up sinking prices. Instead, it resulted in the worst post-cut price decline in a decade.

Global marker Brent has fallen as much as 16 percent, or nearly $10 a barrel, following the cartel’s announcement that it would trim production by 1.2 million barrels a day. That’s only pressured crude’s nearly 40 percent slide from an October high.

Not since 2008 has oil suffered such a blow in the wake of an OPEC cut -- when the cartel surprised the market with a series of curbs in the aftermath of the financial crisis. The final cut, in December 2008, saw oil sink as much as 18 percent.