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Oil Slumps to 3-Week Low

Oil Slumps to 3-Week LowOil Slumps to 3-Week Low

Oil fell to a three-week low on Wednesday on news that Libyan output was recovering from a technical issue at an oilfield, fuelling concerns that OPEC-led output cuts on reducing global inventories were being undermined by producers outside the deal. Global benchmark Brent crude futures were down $1.15, or 2.2%, at $50.69 a barrel, after earlier touching $50.63 a barrel, the weakest since May 12. US West Texas Intermediate (WTI) crude futures traded at $48.70, down 96 cents, or 2%, Reuters reported. "It's the sum of all the negatives that have emerged since last week's OPEC meeting," said Ole Hansen, head of commodities strategy at Saxo Bank. "Traders covered short positions ahead of OPEC and some of these have now been re-established." The Organization of Petroleum Exporting Countries and other producers, including Russia, agreed last week to extend a deal to cut production by about 1.8 million barrels per day until the end of March 2018. The initial six-month deal had been due to expire in June.

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