U.S. crude oil prices dropped nearly 3% on Thursday following news that Saudi Arabia intends to continue with production increases later this year. According to sources cited by The Financial Times, Saudi Arabia is willing to abandon its unofficial $100 per barrel price target. Saudi officials plan to ramp up oil production in December despite the potential for prolonged low prices.
Thursday’s closing energy prices were affected accordingly: the West Texas Intermediate (November contract) fell to $67.67 per barrel, down $2.02 or 2.9%, marking a year-to-date decline of over 5%. The Brent November contract dropped to $71.60 per barrel, a decrease of $1.86 or 2.53%, resulting in a global benchmark decline of about 7% this year. RBOB Gasoline (October contract) went down to $1.9613 per gallon, a dip of 1.93%, with a near 7% drop year-to-date. Natural Gas (October contract) decreased to $2.60 per thousand cubic feet, down 1.4%, though it remains up by over 3% year-to-date.
Adding to the price pressures are expectations of increased oil production in Libya after factions agreed to appoint a new central bank governor, ending a political dispute that had disrupted production. The soft demand in China, the world’s largest crude importer and second-largest consumer, further complicates the outlook. Nevertheless, oil prices had seen a brief rally earlier in the week following Beijing’s announcement of a new stimulus package.
For more in-depth energy insights, stay tuned with CNBC PRO.
Engaging, precise, and capturing the essential facts, this summary keeps readers informed on the latest developments in the energy markets.
Original Story https://www.cnbc.com/2024/09/26/crude-oil-prices-today.html
Category :
Tags:
