Markets > Commodities

Oil prices drop amid supply glut

NEW YORK
2016-02-03 04:56

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Oil prices continued to fall Tuesday as Russia crude output reached a record high.

Russia's oil output climbed 1.5 percent in January, reaching a post-Soviet high level, according to data from Russian Energy Ministry. U.S. Energy Information Agency (EIA) is scheduled to report U.S. inventory data Wednesday. Traders expected to see another build-up of the supply.

The head of Russian oil company Lukoil reportedly said last week that Russia should jointly work with the Organization of Petroleum Exporting Countries (OPEC) to cut supply.

Coordinated oil production cuts between OPEC producers and Russia are highly unlikely since the deal would require further cooperation between OPEC members, investment bank Goldman Sachs said in a report early this week. The West Texas Intermediate for March delivery moved down 1.74 U.S. dollars to settle at 29.88 dollars a barrel on the New York Mercantile Exchange, while Brent crude for April delivery decreased 1.52 dollars to close at 32.72 dollars a barrel on the London ICE Futures Exchange.

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