Crude Oil Extends Downward Rally As OPEC Revises Up Forecasts for International Output

Crude prices hit the lowest level since November 30, 2016 after a monthly report from the Organization of the Petroleum Exporting Countries pointed to an increase in crude inventories of developed countries.

Brent crude fell to as low as $50.40 per barrel – the level not seen in three-and-a-half month as OPEC said in its monthly report that oil inventories in developed countries had risen above the five-year average to stand 278 million barrels in January regardless of efforts by major producers to curb crude output.

The report also revised up its forecast for production outside OPEC by 400,000 bpd, 160,000 more than previously expected. The comeback of U.S. shale drilling is also anticipated to push U.S. output higher by 100,000 bpd in 2017.

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