London: Brent crude tumbled below $50 on Friday, heading for a second straight week of losses, on worries that Donald Trump’s decision to abandon a climate pact could spark more crude drilling in the US, worsening a global glut.
Benchmark Brent crude futures were off by nearly 3 per cent at $49.14 per barrel at 1034 GMT, down $1.49 from the previous close. US West Texas Intermediate crude futures fell $1.45 to $46.91 per barrel. Both contracts were on track for weekly losses of more than 5 per cent.
The withdrawal from the landmark 2015 global agreement to fight climate change drew condemnation from allies — and sparked fears that US oil production could expand even more rapidly.
“I think we will see a United States that is about to go crazy in terms of producing fossil fuels,” said Matt Stanley, a fuel broker at Freight Services International in Dubai, adding other producers could do the same.
“Why wouldn’t they ramp up production when producers like the US have an open invite to do as they please?”
US crude production last week was up by nearly 5,00,000 barrels per day from year-earlier levels, straining Opec’s efforts to reduce global oversupply.
