Oil Prices Drop to Lowest Levels in Four Years

LONDON (AP) — Oil prices sunk to four-year lows following reports Saudi Arabia, OPEC’s largest oil producer, is cutting its prices for customers in the U.S.

By late Tuesday morning London time, a barrel of benchmark crude was down $2.07, or 2.6 percent, at $76.79, its lowest level since September 2010. Meanwhile, Brent crude, the international benchmark, was down $2.14, or 2.5 percent, at $82.63 a barrel, its lowest level since October 2010.

Oil prices have fallen much of this year amid concerns over the global economic recovery as well as excess supplies. The strength of the dollar has also weighed on prices as it makes oil more expensive for international investors.

Fawad Razaqzada, an analyst at Forex.com, says the Saudi report does “not bode well for the future of the cartel.”

(Copyright 2014, KRON 4 and the Associated Press, All rights reserved.)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s