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Iraq wants to be exempt from any production cuts proposed by OPEC [Xinhua]
Futures dropped 0.7 per cent in New York, as the US benchmark West Texas Intermediate briefly fell below $50 per barrel before settling back at $50.11
International benchmark Brent Crude also dropped 0.8 per cent to $51.02 on Tuesday.
The drop comes just a day ahead of a report from the US Energy Information Administration (EIA) which is expected to show a rise in America’s energy inventories.
Oil prices have also been falling on news that Iraq, OPEC’s second-biggest producer, is calling to be exempt from the organization’s proposed production cuts.
Iraqi Oil Minister Jabbar Al-Luaibi said on Sunday that Baghdad should be excluded from production curbs because of it’s embroiled in a war with Islamic militants.
Meanwhile, Britain announced that it’s Buzzard oil field, located in the North Sea and capable of pumping about 180,000 barrels per day (bpd), will restart production after a month-long halt this week.
Prices hit a 10-year low of less than $30 in January, down from a peak of more than $100 in mid-2014.
Saudi Oil Minister Khalid al-Falih said on Sunday, however, that he believes the current cycle of falling crude prices is almost over.
“Market fundamentals, in terms of supply and demand, have begun to improve,” Falih said, adding: “We are optimistic that oil prices will continue to improve in the future.”
The BRICS Post with inputs from Agencies
