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Oil prices fell to a three-year low as Saudi Arabia cut the price of crude oil being exported to the United States.
Oil prices fell to a three-year low as Saudi Arabia cut the price of crude oil being exported to the United States.
According to USA Today:
A barrel of U.S. crude fell as low as $75.84 a barrel Tuesday before rebounding to $77.19, down 2% for the day, still the lowest closing price since October 4, 2011. WTI is now deeply in bear market territory, having tumbled nearly 30% since its June high of nearly $108 per barrel, EIA data show.
Brent, the international benchmark, declined 2.3%, to $82.82, having earlier fallen to $82.08, its lowest level in just over four years, the Associated Press reported.
Bespoke Investment Group researchers wrote to clients, saying:
The oil move is mostly driven by a Saudi announcement yesterday that their production would be discounted for American customers, sending WTI … plummeting into the close of trading yesterday and through the night.