OIL SLUMPS AS SUPPLY CONCERNS WEIGH
FOREX INVESTORS OIL SLUMPS Oil turned sharply lower Friday as concerns of a supply glut weighed in the wake of higher U.S. output. U.S. crude was off $1.14, or 2.50%, at $44.38 at 05:30 ET. Brent shed $1.12, or 2.33%, to $46.99.Oil settled higher overnight in the wake of an upbeat EIA inventories report.
The EIA reported a bigger-than-expected fall in U.S. crude stocks in the latest week of 6.3 million barrels.
Gasoline inventories also fell more than expected.
However, higher U.S. output has undermined the impact on inventories of output cuts by major producers.
OPEC and non-OPEC producers have agreed to curb output by 1.8 million barrels a day through to March.
OPEC exports have reportedly increased despite the output cut accord.
Baker Hughes U.S. rig count data are due out later in the session.