US oil falls below $US50, extending losses amid record US stockpiles

Oil dropped below $US50 in New York for the first time since December as concerns that OPEC's output cuts are failing to restrain record US stockpiles triggered the biggest slump in more than a year.

West Texas Intermediate closed at the lowest since November 29, the day before OPEC approved the first supply cuts in eight years. Crude supplies rose 8.2 million to the highest level in weekly government data since 1982. Harold Hamm, the US shale oil billionaire, warned that the industry could "kill" the market if it embarks on another spending binge. The market swoon stoked the second-highest WTI options trading volume ever and sent volatility surging.

Bloomberg