Oil prices collapsed on Thursday to their lowest since late November as investor worries about the world’s stubbornly persistent glut of crude erased most of the gains that followed last year’s OPEC’s output cut.
The slide worsened after OPEC delegates downplayed the chance that their group and other producing countries would deepen their output cuts when they meet on May 25. They did say current output cuts were likely to be extended.
Brent crude oil futures were down $2.31, or 4.6 percent, at $48.48 a barrel by 1:27 p.m. (1727 GMT). U.S. West Texas Intermediate (WTI) crude futures fell $2.25, or 4.7 percent, at $45.57 a barrel.
Both contracts slid during the session to the lowest since Nov. 30, the day OPEC agreed to cut supply. They were on track for their biggest daily percentage declines March 8.