Oil drops as production in Saudi Arabia recovers

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Oil drops as production in Saudi Arabia recovers

Brent crude futures dropped 40 cents to $64.37 a barrel while U.S> West Texas Intermediate (WTI) futures were also down 33 cents to $58.31 per barrel.

“The demand side of the equation is back in focus. That’s why we’re seeing a little bit more (downward) pressure on Brent than West Texas at the moment,” said Michael McCarthy, senior analyst at CMC Markets in Sydney.

McCarthy was pointing to lower production figures in Europe and Japan.

However, oil prices remained relatively higher for the year in light of the oil attack in Saudi Arabia on Sept. 14.

“An increase in U.S> oil exports to Asia to replace Saudi crude and a reduction in U.S. imports from Iraq meant that crude inventories in the United States could be lower than previously,” said Mike Tran, a commodity strategist at RBC Capital Markets.

European countries, including Britain, Germany, and France are in one with the U.S. in blaming Iran for the oil attack.

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