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Oversupply Drives Oil Prices Down

September 9, 2015 at 16:48 by Vladimir Vyun

Crude oil went down today amid concerns about oversupply. Mexico refused to cut production as a measure to support prices because its output was declining anyway. Energy Minister Pedro Joaquin Coldwell told Reuters:

Mexico is not influencing overproduction because Mexico’s oil output has been steadily declining.

He then added:

It would be unacceptable for us to have to cut when our output is already declining.

Earlier, there were rumors that the Organization of Petroleum Exporting Countries had contacted Mexico and Russia with request to reduce their oil production.

Now, markets wait for supply reports from the United States. The private data from American Petroleum Institute will be released later today while the government data from the Energy Information Administration is scheduled for tomorrow. Reports were delayed due to the Labor Day holiday in the United States on Monday.

Futures for delivery of WTI crude oil in October declined 1.89 percent to $45.07 per barrel as of 16:43 GMT on NYMEX today. Contract for WTI crude dropped 2.2 percent to $48.43 per barrel on ICE.

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