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US crude drops 10pc on OPEC decision, biggest one-day fall in 5yrs

US crude drops 10pc on OPEC decision, biggest one-day fall in 5yrs

LONDON:U.S. crude fell 10 percent in its leading one-day drop in more than five years on Friday, and benchmark Brent bust lower than $70 a barrel, as OPEC’s decision not to cut production sent oil dealers and forecasters scurrying to find a new trading floor.
“I see little reason to buy oil now. I think people are either going to drive it down further or just let the market collapse,” said Tariq Zahir, managing member at Tyche Capital Advisors in Hollow Way, New York.
U.S. West Texas Intermediate (WTI) light crude (WTI) settled down $7.54 at $66.15 a barrel, and fell further post-settlement, reaching a four-year low of $65.69. The last time the market lost 10 percent in a day was in March 2009.
North Sea Brent LCOc1 finished down $2.43, or 3.3 percent, at $70.15. It fell to as low as $69.78 on the day, a bottom since May 2010. Brent also finished down 18 percent for November for a fifth straight month of declines, or the longest losing streak since the 2008-2009 financial crisis.
Since June, Brent has given up about 40 percent of its value, falling from above $115, as increasing U.S. shale oil output helped create a glut amid sluggish global growth.