Brent crude and West Texas Intermediate crude prices slide as production in Russia and Opec member states booms
A rise in crude output in most major oil-producing regions ahead of a landmark curb to production has driven down the price of the black stuff today.
Production among the Organisation of the Petroleum Exporting Countries rose to another record high in November, according to a Reuters survey, reaching 34.19m barrels per day (bpd), up from 33.82m in October.
Output from Russia, a non-Opec member crucial to the cartel's recently-agreed cut, rose to 11.21m bpd in November, its highest in nearly 30 years.
Together, the 14-country Opec group and Russia have produced enough crude between them to cover almost half of all global oil demand, which sits at around 95m bpd.
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Global benchmark Brent crude is trading down 2.4 per cent today, or $1.30, to $53.64, while US sweet crude is down 2.7 per cent, ot $1.39, to $50.40.
Yesterday, Brent crude shot above $55 a barrel for the first time since July last year, after a Russian oil boss signalled that oil output cuts may begin in March.
Prices have been lifted since a cap, agreed between Opec members last week, means Opec members will cut production by 1.2m barrels a day, to 32.5m.
The consortium will meet with non-Opec producers on 9 December.
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Opec is a cartel which attempts to control prices for the benefit of its members. However, it had not previously agreed to a supply cut since demand crashed in 2008 when the financial crisis hit economies around the world.
