U.S. Oil Prices Drop Dramatically, Here’s Why…
Oil in New York headed for its longest run of losses since February after Saudi Arabia and Russia proposed raising production later this year.
Futures slid 1.4 percent on Tuesday after Friday’s 4 percent decline. Saudi Arabia and Russia said OPEC and its partners may boost supply to make up for potential losses from other members, most notably Venezuela and Iran. There was no settlement Monday for West Texas Intermediate because of the U.S. Memorial Day holiday and all trades will be booked Tuesday.
U.S. President Donald Trump’s decision to reimpose sanctions on Iran and Venezuela’s slumping output drove oil to the highest level in more than three years earlier this month, prompting complaints from consuming nations like India about higher costs. The plan for OPEC and its allies to boost supply once more follows growing concerns that crude prices at current levels will slow demand growth. [read more]