Crude oil prices at lowest level in five months

By Ovunc Kutlu

NEW YORK (AA) - Crude oil prices plunged to their lowest level in five months Thursday, erasing all of their gains since OPEC and Russia's decision to cut their output levels on Nov. 30.

International benchmark Brent crude fell to $48.17 per barrel, after opening the day at $50.65 a barrel. American benchmark West Texas Intermediate declined to $45.31 a barrel, after beginning the day at $47.64 per barrel.

Both benchmarks lost 4.9 percent Thursday, falling to their lowest level since Nov. 30 -- the day when OPEC members and Russia agreed to cut their individual oil production to increase prices.

Crude prices stabilized around $50-$55 a barrel over the past five months, but have recently been on a downward trend, losing 7 percent two weeks ago.

One major reason behind the trend is the uncertainty whether OPEC and Russia would extend their deal into the second half of the year.

Another reason is the rising crude production in the U.S, which rose 6.9 percent in the past 5 months, increasing worries over the glut of supply in the global market, according to the Energy Information Administration (EIA) data.

The U.S. oil production has increased for 11 consecutive weeks, the EIA data shows.