Wednesday, January 21, 2015

West TX Oil Steady Around $47 after OPEC Defends Inaction

U.S. crude futures fell more than 1 percent on Thursday, giving up almost half the gains from the previous session, after OPEC defended its decision not to intervene to stop a collapse in oil prices since the middle of last year.

NYMEX crude for March delivery was down 50 cents, or 1.05 percent, at $47.28 a barrel by 0003 GMT.  NYMEX rose more than 2 percent on Wednesday on optimism for a recovery as energy companies cut production investment to alleviate a supply glut that has wiped out more than half crude’s value since June.  London Brent crude for March delivery was untraded, after rising $1.04 to close at $49.03 on Wednesday.

OPEC defended on Wednesday its decision not to intervene to halt the oil price plunge, shrugging off warnings by top energy firms that the cartel’s policy could lead to a huge supply shortage as investments dry up.

CNBC

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