Oil prices fell further on Friday to be mired at five-month lows after tumbling in the previous gsession, as concerns about global oversupply wiped out all of the price gains since OPEC’s move to cut output.
The recent steep price fall would likely force OPEC members to extend production cuts later this month, but the prospect of deeper cuts appeared slim, analysts said.
“So far OPEC’s strategy to draw down inventories has not worked … It seems obvious to us that OPEC will need to keep the cuts in place for longer than the next 6 months if their strategy is to have any chance of success,” Neil Beveridge, senior oil and gas analyst at AB Bernstein in Hong Kong said in a note to clients on Friday.
