U.S. crude oil prices fell nearly 3% on Thursday on a report that Saudi Arabia is committed to pressing ahead with production increases later this year.
Saudi is prepared to ditch its unofficial oil price target of $100 per barrel, people familiar with the kingdom’s thinking told The Financial Times. Saudi officials are ready to increase oil production in December even if the move results in a prolonged period of low oil prices, the people said.
Here are Thursday’s closing energy prices:
- West Texas Intermediate November contract: $67.67 per barrel, down $2.02, or 2.9%. Year to date, U.S. crude oil is down more than 5%.
- Brent November contract: $71.60 per barrel, down $1.86, or 2.53%. Year to date, the global benchmark is down about 7%.
- RBOB Gasoline October contract: $1.9613 per gallon, down 1.93%. Year to date, gasoline is down about nearly 7%.
- Natural Gas October contract: $2.60 per thousand cubic feet, down 1.4%. Year to date, gas is up more than 3%.
Prices are also under pressure on the expectation that oil production will rise in Libya. Factions in the North African country reached a deal Wednesday to appoint a new central bank governor. A political dispute over who should lead the bank has led to production disruptions.
The prospect of rising production is set against a backdrop of soft demand in China, the world’s largest crude importer and second-largest consumer. Oil prices rallied earlier in the week after Beijing announced a new stimulus package.