Investors took oil lower on Friday, as the decision of United States President Donald Trump to ditch the Paris climate accord strengthened belief producers in North America would ramp up output further. Brent edged below $50 per barrel for the first time since May 10 on ICE Futures Europe.
Exploitation volume caps among members of the Organization of the Petroleum Exporting Countries and a group of major suppliers led by Russia are set to be extended for nine months, while Libya and Nigeria are exempt, partly snatching back market share from before the current internal conflicts. The trend may disturb the fragile balance with demand, even though the latest official data from the US showed a sharp weekly decline in commercial inventories.
West Texas Intermediate for delivery next month slumped 1.67% to $47.55 per barrel, after dipping to as low as $47.5, a level unseen since May 12. Brent for settlement in August lost 1.56% to trade for $49.84 for one barrel. The global benchmark was looking at a fifth consecutive daily drop. The dollar was stable overall, as the euro's marginal rise of 0.05% to $1.21187 offset the greenback's increase of 0.22% to ¥111.609.
