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Crude Oil Drops More Than 2% on Easter Monday

April 2, 2018 at 18:31 by Vladimir Vyun

Prices for crude oil slumped more than 2% today. That is despite Easter Monday, which is holiday in many countries, resulting in light trade and low volumes. There were various reasons for the drop.

One of them were fears of a trade war between the United States and China. Crude is directly linked to global growth, and trade wars do not bode well for the world’s economy.

As for negative factors specific to the commodity, Russia increased its oil production to 10.97 million barrels per day — the highest level in almost a year and slightly above the limit set by the OPEC-initiated supply cuts. Moreover, there were speculations that Saudi Arabia is going to cut prices for Asian buyers. That triggered talks that the biggest proponent of supply cuts may rethink its opinion about them as Bob Yawger, director of energy futures at Mizuho in New York, said to Reuters:

That is not really the kind of thing you do when you want to keep production cuts in place.

May futures for delivery of WTI crude oil dropped 2.71% to $63.18 per barrel as of 18:20 GMT on NYMEX today. June contract for Brent crude declined 2.12% to $67.87 per barrel on ICE.

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