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Oil prices have dropped further, adding to near 5% losses seen on May 4, as concerns about a worldwide supply glut resurfaced.

Brent crude fell 1.8% at $47.49 a barrel, while US crude dropped 2.1% to $44.58 a barrel.

Oil is at its lowest level since November 2016, when OPEC struck a deal to cut output.

Investors are worried that OPEC nations will fail to rein in output further at their next meeting later this month.

Oil prices down by about 15% since the start of the year, despite Opec’s agreement in November which cut output by 1.8 million barrels a day.

Photo Getty Images

Supply is still outpacing demand, with US oil production alone up by 10% since summer 2016.

It now pumps out some 9.3 million barrels a day – not far short of the two giant oil producing nations of Russia and Saudi Arabia.

OPEC and other oil nations are meeting on May 25 where they will discuss the success of the six-month cutback and whether it should be deepened.

Russia, one of the non-OPEC countries to sign up to the cuts, gave mixed signals on May 4 about whether it would continue.

Data released on May 2 indicated US crude stocks fell 930,000 barrels last week. Analysts had been expecting a drop of 2.3 million barrels.

The fall in crude prices hit global energy and commodity stocks.

On May 4, US oil giants Chevron and Exxon Mobil were two of the biggest fallers on Wall Street, dropping 2% and 1.3% respectively.

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Oil prices soared as much as 12% on February 12 after new suggestions that OPEC nations were set to cut oil production.

According to the Wall Street Journal, the United Arab Emirates’ energy minister said that OPEC members were ready to reduce output.

Meanwhile, Venezuela’s oil minister said oil-producing nations were on a “very good path” to clinch a deal.

However, traders said sharp falls on February 11 may have triggered some bargain-hunting.

Eulogio Del Pino, the Venezuelan minister, who recently visited Russia and Saudi Arabia as part of a global tour to drum up support among both OPEC and non-OPEC producers, said “we’re on a very, very, very good path” to reducing production.Oil prices February 2016

Brent crude closed up $3.30 at $33.36 a barrel in New York after falling below $30 on February 11.

After sinking to a 12-year low of $26.05 on February 11, US crude settled up 12%, or $3.23, to $29.44 a barrel – its biggest one-day rise since 2009.

Many traders were skeptical about the Journal‘s report, pointing out that Venezuela and Russia had tried in vain earlier this week to stir Saudi Arabia and other major producers into agreeing to output cuts.

However, some believe that prices would rebound sooner or later if production tightened or demand rose.

Commerzbank analysts said: “We expect declining US oil production, in particular, to drive the oil price back up to $50 per barrel by the end of the year.”

Friday’s price rises were also aided by figures from oil services company Baker Hughes, which said that US energy companies cut the number of oil rigs for the eighth consecutive week to the lowest levels since January 2010.

Drillers removed 28 oil rigs, bringing the total rig count down to 439, Baker Hughes said.

The jump in oil prices helped to boost sentiment on stock markets.

Wall Street was trading higher on February 12, with the S&P 500 rising 1.8% and the Dow Jones Industrial Average up close to 2% in late trading.

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