UPDATE 8-Oil dives, sending U.S. crude below $50 for first time in 2 weeks

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

* U.S. crude ends down 6.8 pct on week; Brent off 7.3 pct * U.S. drillers add rigs for the 14th straight week * Russian energy minister won't say whether to join new OPEC cuts (New throughout, updates prices, market activity, data and comments to settlement) By Julia Simon NEW YORK, April 21 (Reuters) - Oil prices tumbled more than 2 percent on Friday, notching the biggest weekly decline in more than a month on mounting evidence that U.S. production and inventory growth were offsetting OPEC's attempts to reduce the global crude glut. Brent futures LCOc1 settled at $51.96 a barrel, down $1.03, or 2 percent at the market's close. U.S. crude futures CLc1 ended at $49.62 a barrel, down 2.2 percent, or $1.09. Volumes were heavy, with more than 665,000 WTI futures changing hands, surpassing the daily average of 525,000 contracts. For the week, Brent fell 7 percent, while U.S. crude lost 6.7 percent. It was the largest percentage drop for both benchmarks since the week of March 10, when rising concern about the supply glut undermined big bets on an oil rally. Those speculative bets have been on the rise again. urn:newsml:reuters.com:*:nEMN3I8441 On Friday, the U.S. Commodities Future Trading Commission (CFTC) showed total long positions in U.S. crude rose in the week to April 18 to their highest in more than a month at 355,077 contracts. But oil has sagged in recent days, much as it did in March. Many in the market still expect the Organization of the Petroleum Exporting Countries (OPEC) to renew its production cuts for another six months. On Friday an OPEC and non-OPEC member technical committee recommended extending cuts of almost 1.8 million barrels per day (bpd) at the upcoming May 25 meeting. urn:newsml:reuters.com:*:nL8N1HT4UA Still, shipment data shows more oil transiting world oceans than when cuts were put in place. urn:newsml:reuters.com:*:nL1N1HS1G4 "The reason that we're seeing the selloff today and really for this week has been related to the fact that we're seeing higher waterborne imports arriving from the Middle East," said Matt Smith, director of commodity research at Clipperdata. "We should continue to remain well supplied at least over the next few weeks." In addition, Russia's Energy Minister Alexander Novak declined to say whether Russia would adhere to an extension, saying global stocks were declining. urn:newsml:reuters.com:*:nL3N1HT2JR Bjarne Schieldrop, chief commodities analyst at Nordic bank SEB, does not expect OPEC to roll over its cuts, saying it could potentially leave the cartel vulnerable to "more stimulus of the U.S. shale oil sector." U.S. production, already at its highest since August 2015, looks likely to keep rising. U.S. drillers added rigs for a 14th consecutive week, Baker Hughes said on Friday. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Murky oil inventory picture leaves market grappling for clarity urn:newsml:reuters.com:*:nL1N1HS10N CHART: What tighter oil supply? http://tmsnrt.rs/2pElIP6 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Ron Bousso in London, Henning Gloystein in Singapore; Editing by David Gregorio and Chizu Nomiyama) ((Julia Simon, julia.simon@thomsonreuters.com, +16462238925)) Keywords: GLOBAL OIL/

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.