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U.S. crude slides lower but holds above $50 threshold

Published 10/07/2016, 06:20 AM
© Reuters.  Crude prices pull back after hitting 4-month highs
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Investing.com - U.S. oil futures continued to climb on Friday, and were hovering above the $50 a barrel threshold as upbeat U.S. stockpiles data and sustained optimism following the OPEC production freeze deal continued to support the commodity.

U.S. crude futures for November delivery were down 0.38% at $50.24 a barrel, just off a four-month high of $50.75 hit overnight.

On the ICE Futures Exchange in London, the December Brent contract slid 0.55% to $52.23 a barrel, after also rising to a four-month peak of $52.75 earlier in the session.

Crude prices remained supported after the U.S. Energy Information Administration said on Wednesday that crude oil inventories fell by 3.0 million barrels last week to 499.7 million, the lowest since January.

Despite initial skepticism, traders seemed globally optimistic after the Organization of the Petroleum Exporting Countries said last week that it would cut output to between 32.5 million barrels per day (bpd) and 33.0 million bpd from about 33.5 million bpd.

It was the first such deal since 2008.

Market participants were also encouraged by news OPEC could cut production at its November meeting in Vienna by another 1%.

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