Oil slips below $35 on rise in stockpiles

Oil prices fell below $35 per barrel for the first time since 2004 on Wednesday, tumbling more than five percent as the >row between Saudi Arabia and Iran made any cooperation between major exporters on cutting output even more unlikely.

A sharp rise in gasoline stocks in the United States reinforced the picture of a market that is awash with oil and refined products.

The >international furore over Saudi Arabia's execution of a Shi'ite cleric ended speculation that OPEC members might agree to production cuts to lift prices.

"There are rising stockpiles and the tension between Iran and Saudi Arabia makes any deal on production unlikely," said Michael Hewson, chief market analyst at CMC Markets.

Evidence of slowing economic growth in China and India has meanwhile fuelled fears that even strong demand elsewhere may not be enough to mop up the excess crude that has resulted from near-record production over the last year.

Brent futures

Benchmark Brent futures were traded at $34.48 a barrel at 1606 GMT, down $1.94 on the day, and at their lowest level since early July 2004. The price is on track for its largest one-day drop in percentage terms in nearly five weeks.

U.S. crude futures were down $1.48 at $34.49 a barrel after slipping 79 cents the previous day.

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Printable version | Mar 29, 2020 3:15:35 AM |

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