WTI drops for a 10th straight day, dip­ping be­low US$60

The Western Star - - BUSINESS -

TORONTO — Crude oil prices lost ground for a tenth con­sec­u­tive day to dip to near nine-month low.

West Texas In­ter­me­di­ate lost 1.2 per cent or 72 cents to reach US$59.95 in early af­ter­noon trad­ing.

Since its peak last month, WTI is down about 22 per cent for a fifth con­sec­u­tive weekly drop.

A glut of oil pro­duc­tion is the main cause of the de­clines in prices of WTI and Brent crude. The United States has taken the crown as the world’s lead­ing oil pro­ducer af­ter out­put in­creased by two mil­lion bar­rels per day over the last year to reach 11.6 mil­lion bpd, the swiftest an­nual rise on record.

At the same time, OPEC is over-pro­duc­ing and sanc­tions have been wa­tered down against Iran as the U.S. granted waivers on the sanc­tions to eight coun­tries over con­cerns that a com­plete end of Ira­nian im­ports would cause eco­nomic dis­rup­tions.

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