[Oil's slump has roiled markets from the Russian ruble to the Nigerian
naira and squeezed government budgets in producing nations including
Venezuela and Ecuador. It's also boosted China's emergency crude
reserves and helped shrink fuel subsidies in India and Indonesia. OPEC
has signaled it won't cut supply to influence prices, instead
preferring to defend market share amid an unprecedented U.S. shale
boom.]

http://www.firstenercastfinancial.com/news/story/60980-oil-set-biggest-slump-2008-opec-battles-us-shale

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Jan 04, 2015
Forecast & Analysis - Top News Stories - Financial - Releases - Weather
Oil Set for Biggest Slump Since 2008 as OPEC Battles U.S. Shale
Published: Dec 30, 2014
By Sharon Cho Dec 30, 2014

Oil Price Decline Is `Unsustainable,' Gramatovich Says
Oil headed for the biggest annual decline since the global financial
crisis as neither U.S. producers nor the Organization of Petroleum
Exporting Countries show signs of ceding ground in a battle for market
share amid a supply glut.

***Futures slid as much as 1.1 percent in New York, bringing losses
for 2014 to 45 percent. U.S. guidelines allowing overseas sales of
ultralight oil without government approval may boost the country's
export capacity and "throw a monkey wrench" into Saudi Arabia's plan
to curb American output, according to Citigroup Inc. U.S. crude
inventories are forecast to rise to the highest level for this time of
the year in three decades.*** [Emphasis added.]

***Oil's slump has roiled markets from the Russian ruble to the
Nigerian naira and squeezed government budgets in producing nations
including Venezuela and Ecuador. It's also boosted China's emergency
crude reserves and helped shrink fuel subsidies in India and
Indonesia. OPEC has signaled it won't cut supply to influence prices,
instead preferring to defend market share amid an unprecedented U.S.
shale boom.*** [Emphasis added.]

"For this year, the biggest factor driving down oil prices was U.S.
shale production followed by a price war," Hong Sung Ki, a commodities
analyst at Samsung Futures Inc. in Seoul, said by phone today. "The
possibility of U.S. curbing output will be the only booster but
nothing has been done, so we're seeing a continuation of the price
decline."

West Texas Intermediate for February delivery dropped as much as 57
cents to $53.55 a barrel in electronic trading on the New York
Mercantile Exchange and was at $53.69 at 9:11 a.m. Singapore time. The
contract climbed 51 cents to $54.12 yesterday, gaining for the first
time in four days. Total volume was about 82 percent below the 100-day
average.

Brent for February settlement fell as much as 55 cents, or 1 percent,
to $57.35 a barrel on the London-based ICE Futures Europe exchange.
Prices are down 48 percent this year. The European benchmark crude
traded at a premium of $3.75 to WTI.

To contact the reporter on this story: Sharon Cho in Singapore at
[email protected]

To contact the editors responsible for this story: Pratish Narayanan
at [email protected] Yee Kai Pin

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