Oil extends drop from the lowest close since 2009

Baku. 5 January. REPORT.AZ/ Futures slid as much as 1.9 percent in London, after losing 5.1 percent last week. Iraq, the second-largest producer in the Organization of Petroleum Exporting Countries, plans to boost crude exports this month, the oil ministry said. Sanford C. Bernstein cut its Brent forecasts for this year, citing increases in global spare capacity and rising inventories, Report informs citing Bloomberg.

Brent for February settlement declined as much as $1.06 to $55.36 a barrel on the London-based ICE Futures Europe exchange, and was at $55.54 at 1:44 p.m. The contract fell 91 cents to $56.42 on Jan. 2, the lowest close since May 2009. The European benchmark grade traded at a premium of $3.90 to West Texas Intermediate.

Brent slumped 48 percent last year, the most since the 2008 financial crisis, as OPEC resisted calls to cut output amid a battle with U.S. shale producers for market share. The 12-member group, which supplies about 40 percent of the world’s crude, pumped above its target for a seventh straight month in December, according to a Bloomberg.

It also should be noted that, as of 05:40 PM Baku time, in world markets price for WTI crude oil fell to 51,12 USD/barrel, Brent to 54,63 USD/barrel.