West TX Oil Near $77 on Oil Glut

Oil prices plunged to new lows Tuesday on renewed concerns about a global supply glut, extending a selloff that has rattled financial markets, driven down shares of energy companies and stoked alarm among government officials.

U.S. oil futures fell $1.59, or 2%, to $77.19 a barrel, a fresh three-year low, and Brent crude, the global benchmark, slid $1.96, or 2.3%, to $82.82 a barrel, a new four-year low.

Saudi Arabia’s surprise price cut for its U.S. oil deliveries this week has driven the latest swoon, with U.S. oil prices down 4% since the announcement. The move suggests the world’s largest oil exporter is more concerned with maintaining production volume and market share than shoring up prices through output cuts, experts say.

WSJ

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