Crude oil is under fresh pressure on Thursday, with West Texas Intermediate falling below the $46-a-barrel level for the first time in more than a year. This despite crossing headlines that both OPEC and non-OPEC nations such as Russia are expected to agree on a further six-month extension to the supply freeze agreement signed last year.
Why is the market ignoring the news? Because it’s increasingly clear the cap isn’t working. U.S. shale producers stepped into the void, encouraged by the price recovery OPEC initially created, to increase drilling rig activity and recapture market share the oil sheiks won during the oil price war they started in 2014.
Moreover, inventories continue to swell suggesting the production cap did little to actually rebalance global supply and demand.
As a result, stocks in the energy sector are suffering breakdowns. Here are eight that are suffering: