U.S. crude oil prices fell about 3% on Thursday after reports that Saudi Arabia intends to push ahead with production increases later this year.
Saudi Arabia is ready to abandon its unofficial oil price target of $100 a barrel, a person familiar with the country's thinking said. Financial TimesSaudi authorities are ready to increase oil production in December even if oil prices remain low for a prolonged period, the people said.
Energy prices on Thursday were as follows:
- West Texas Intermediate November contract: $68.15 per barrel, down $1.54 (2.21%). Year to date, U.S. crude is down about 5%.
- Brent November contract: $71.86 per barrel, down $1.60 (2.2%). The global benchmark is down nearly 7% since the start of the year.
- RBOB Gasoline October contract: $1.964 per gallon, down 1.7%. Gasoline is down about 6% so far this year.
- Natural Gas October contract: $2.628 per 1,000 cubic feet, up 0.3%. Year to date, gas is up more than 4%.
Prices are also falling on hopes that Libyan oil production will increase. The North African nation's two factions agreed on Wednesday to appoint a new central bank governor, even as a political dispute over who should lead the bank has led to disruptions to production.
The outlook for increased production comes against the backdrop of weak demand in China, the world's largest crude importer and second-largest consumer. Oil prices rose earlier this week after the Chinese government announced new stimulus measures to boost its economy.
