Oil traded near $52 a barrel as OPEC reported record compliance with pledged production cuts and U.S. drilling slowed again.
west texas intermediate
Oil has dropped below $50 amide signs US shale drilled have been adapting to lower prices.
Oil headed for a second weekly decline in New York, trading near its lowest level in two months, as US crude stockpiles rose three times more than forecast and the IEA said inventories in developed nations have reached a record.
Oil dropped for a second day after the US Federal Reserve left borrowing costs unchanged because of concern about recent global economic turmoil.
China may launch a global crude oil futures contract as early as October to compete with the existing London Brent and the US WTI benchmarks as it pushes ahead with reforms to open up its oil markets.
The big oil producing countries keep on pumping, even though prices are at a six-year low.
Oil’s rebound from a six-year low has faltered on signs the global surplus will be prolonged as Iran bids to restore output after its nuclear accord.