Crude Oil Drops On Dimming Prospect of Output Restraint

Crude oil prices fell by 1.83 per cent on Monday as the chances of Middle East producers agreeing to curb overproduction appeared to fade, while stubbornly high US output and worries about Asia's economic outlook also dragged on prices. At the MCX, crude oil futures for April 2016 contract were trading at Rs. 2,418 per barrel, down by 1.83 per cent, after opening at Rs. 2,457 against the previous closing price of Rs. 2,463. It touched the intra-day low of Rs. 2,418 till the trading.

 

Iran, returning to global oil markets after sanctions against it were lifted in January, said it would continue increasing its oil production and exports until it reaches the market position it enjoyed before the imposition of sanctions, according to a media report.
 

Adding to concerns of a global glut is US production remains high despite steep cuts in drilling for new reserves as well as a jump in bankruptcies.

 

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