Oil prices fell on Tuesday, as investors weighed continued uncertainty ahead of U.K.’s referendum this week and focused on the persistent overhang of crude. Brent crude, the global oil benchmark, fell 1.1% to $50.11 a barrel on London’s ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading down 0.8% at $49.55 a barrel. Recently, the oil market has been swayed by gyrations in the polls ahead of Thursday’s U.K. referendum on its European Union membership. After falling for much of last week, oil had notched a two-day gain, pushing Brent back above the $50 threshold, as polls showed more British voters in favor for their country remaining in the bloc.
National Average Price for Regular – Current: $2.447; Month Ago: $2.564; Year Ago: $2.229.
National Average Price for Diesel – Current: $2.834; Month Ago: $2.834; Year Ago: $2.440.
OPEC is on course to strike an output-freeze deal with fellow oil producers in Algiers next month because its biggest members are already pumping flat-out, the group’s former president said. While a similar initiative failed in April, an agreement can now be reached as Saudi Arabia, Iran, Iraq and non-member Russia are producing at, or close to, maximum capacity, Chakib Khelil said in a Bloomberg Television interview. Khelil steered OPEC in 2008, the last time it implemented an output cut, which was announced in Algeria in December of that year. “All the conditions are set for an agreement,” Khelil said from Washington. “Probably this is the time because most of the big countries like Russia, Iran, Iraq and Saudi Arabia are reaching their top production level. They have gained all the market share they could gain.”
Futures decreased as much as 2.1 percent in New York, as investors across financial markets fled risky assets while Trump faces the biggest crisis of his presidency over a series of damaging revelations. That’s countering optimism after U.S. data showed stockpiles last week fell for a sixth straight week and crude production ended the longest stretch of gains since 2012. U.S. crude stockpiles declined 1.75 million barrels to 520.8 million barrels last week, down from a record 535.5 million at the end of March, according to the Energy Information Administration. The nation’s oil production dropped to 9.3 million barrels a day, EIA data released Wednesday show. click Read More below for more of the story