Oil Drops Most in 3 Years as Investors Flee Darkening Outlook
Oil’s unprecedented decline deepened as investors fled a market hammered by swelling excess supplies, a darkening demand outlook and U.S. President Donald Trump’s Twitter critique of the world’s biggest crude exporter.
Futures plunged 7.1 percent in New York on Tuesday for the biggest one-day drop in three years. OPEC’s dire forecast for 2019 demand came at a time of steadily rising American production and stockpiles. Trump admonished Saudi Arabia for planning to curb output and lamented prices that settled below $56 a barrel for the first time in a year.
“This tweet certainly did not help prices,” said Warren Patterson, a senior commodities strategist at ING Bank NV. “Given the growing global surplus over the first half of 2019, OPEC will likely try to ignore President Trump’s call as much as possible.”
WTI for December delivery dropped $4.24 to end the session at $55.69 a barrel on the New York Mercantile Exchange. Total volume traded Tuesday was about 90 percent above the 100-day average.
https://www.bloombergquint.com/markets/oil-extends-record-losing-streak-as-trump-blasts-saudi-s-plan-jof4fcjf#gs.QaZddLY
