Oil dropped after Iraqi crude production surged to a record and the International Monetary Fund cut its global growth outlook.
Crude fell 4.7 percent in New York and 1.7 percent in London. Iraq is pumping 4 million barrels a day and will boost exports, Oil Minister Adel Abdul Mahdi said at a news conference in Baghdad. The IMF made the steepest reduction to its global-growth outlook since January 2012 in its quarterly global outlook issued yesterday. Projections for the euro area, Japan, China and Latin America were trimmed.
Oil has fallen by more than half since June as the U.S. pumped at the fastest pace in more than three decades and the Organization of Petroleum Exporting Countries resisted calls to reduce production. Goldman Sachs Group Inc. and Societe Generale SA were among banks to reduce their price forecasts last week.