Oil drops for third week on US supplies

Bloomberg

Crude oil had its third weekly loss in a month as OPEC and its allies prepared to meet for a review
of their production cuts, while swelling US stockpiles indicated the measures aren’t working yet.
Futures slipped 1.7 percent this week in New York. US crude output continued to expand along with inventories last week, data from the government showed on Wednesday. While OPEC won’t formally decide until May whether to prolong a production-cut deal aimed at easing a global glut, officials will meet this weekend in Kuwait to discuss its progress.
Oil this week slid below $48 a barrel, the lowest prices since November, as the US supply glut and increased drilling activity continued to counter output cuts by the Organization of Petroleum Exporting Countries and other producers. OPEC will extend the cuts if stockpiles are still above their five-year average, Saudi Arabian Energy Minister Khalid Al-Falih said.
“Breaking through $50 was bearish psychologically,” Rob Thummel, a managing director and portfolio manager at Tortoise Capital Advisors LLC who helps manage $17.2 billion, said in an interview.
“The probability of OPEC extending the cuts is even higher with prices in the $40s.”
West Texas Intermediate for May delivery rose 27 cents to settle at $47.97 a barrel on the New York Mercantile Exchange. Front-month futures closed at $47.34 on Tuesday, the lowest settlement since November 29. Total volume traded was about 39 percent below the 100-day average. Brent for May settlement rose 24 cents to $50.80 a barrel on the London-based ICE Futures Europe exchange. Prices fell to $50.56 on Thursday, the lowest close since November 30. The global benchmark slipped 1.9 percent this week. Brent closed at a $2.83 premium to WTI.