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MTECHTIPS;-U.S. crude plunges 4% to hit six-year low, amid continuing OPEC build

MTECHTIPS;-U.S. crude plunges 4% to hit six-year low, amid continuing OPEC build

U.S. crude futures plunged to six-year lows on Tuesday, amid fresh concerns of long-term oversupply on the global energy markets following the release of bearish data from OPEC earlier in the session. On the New York Mercantile Exchange, WTI crude for September delivery traded in a broad range between $42.70 and $45.33 a barrel before closing at $43.13, down 1.84 or 4.06% on the day. U.S. crude futures fell below previous yearly lows from March when they bottomed at the tail end of a five-month rout. Texas Long Sweet futures have fallen sharply by more than 20% over the last month of trading. On the Intercontinental Exchange (ICE), brent crude for September delivery wavered between $49.19 and $51.69 before settling at $49.70 a barrel, down 1.32 or 2.59% on the session. Brent crude futures fell to near its January low of $48.78 when the international benchmark touched down to six-year lows. The spread between the international and U.S. benchmarks of crude stood at $6.57, above Monday’s level of $6.09 at the close. While Saudi Arabia reported a slight decline in production last month, OPEC demonstrated little sign of cutting output as production increased moderately to remain at its highest level in more than three years. For July, Saudi output declined by 0.2 million barrels per day to 10.4 million bpd, one month after surging to multi-year highs. OPEC, meanwhile, increased output overall by 100,000 bpd to 31.5 million bpd on the month, amid production builds in Iraq, Iran, Angola and the United Arab Emirates.
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