Crude oil prices are plunging sharply, hitting a new 4-year low in the process, as traders look ahead to the outcome of the OPEC meeting in Vienna. Oil prices tumbled as remarks from Saudi Arabia’s oil minister that oil market will stabilize itself added to speculation that a consensus on production cut is quite unlikely.
Wednesday’s report from U.S. Energy Information Administration showing a bigger than expected increase in crude stockpiles is also weighing on crude.
Crude oil futures for January delivery are down $1.96 or 2.65 percent at $72.13 a barrel, after declining to $71.93, the lowest level since 1 September 2010.
On Wednesday, crude oil futures ended down $0.40 or 0.54 percent at $73.69 a barrel, extending losses to a third successive session.
Data from the U.S. Energy Information Administration that showed crude stockpiles to have risen by a more than expected 1.9 million barrels last week weighed on oil.
Some downbeat U.S. economic data and uncertainties about OPEC member arriving at a compromise formula to trim production also contributed to oil’s fall. The Saudis have already stated that they would rather have lower prices than agreeing for a production cut.
Meanwhile, natural gas for January is down $0.123 or 2.80 percent at $4.280 per million btu.
Published: 2014-11-27 13:08:00 UTC+00
Crude Oil Plunges To Fresh 4-year Low
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