West Texas Intermediate fell below $65 a barrel to the lowest intraday level since July 2009 amid speculation that prices need to drop further before OPEC’s decision to maintain production slows U.S. shale supply.
Futures lost as much as 3.1 percent in New York, while London-traded Brent slid 3.2 percent. Current prices are no guarantee of a significant decline in U.S. shale output, Iran’s Oil Minister Bijan Namdar Zanganeh said in an interview on Nov. 28. Iraq is considering spending cuts amid the price slump, according to a cabinet statement.
Oil has collapsed into a bear market as the U.S. pumps crude at the fastest rate in three decades even amid signs that global demand is slowing. The Organization of Petroleum Exporting Countries last week resisted calls from members including Venezuela, Iran and Iraq to reduce its production target of 30 million barrels a day at a meeting in Vienna.
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