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U.S. crude oil falls nearly 3%, closes below $68 on report Saudi committed to production increase

An oil drilling rig stands on one of the Causeway islands in the Manifa offshore oilfield, operated by Saudi Aramco, in Manifa, Saudi Arabia, on Wednesday, Oct. 3, 2018.ย 
Simon Dawson | Bloomberg | Getty Images
  • Saudi is ready to increase production in December even if the move results in low oil prices for a prolonged period, people told The Financial Times.

U.S. crude oil prices fell nearly 3% on Thursday on a report that Saudi Arabia is committed to pressing ahead with production increases later this year.

Saudi is prepared to ditch its unofficial oil price target of $100 per barrel, people familiar with the kingdom's thinking told The Financial Times. Saudi officials are ready to increase oil production in December even if the move results in a prolonged period of low oil prices, the people said.

Here are Thursday's closing energy prices:

  • West Texas Intermediate November contract: $67.67 per barrel, down $2.02, or 2.9%. Year to date, U.S. crude oil is down more than 5%.
  • Brent November contract: $71.60 per barrel, down $1.86, or 2.53%. Year to date, the global benchmark is down about 7%.
  • RBOB Gasoline October contract:ย $1.9613 per gallon, down 1.93%. Year to date, gasoline is down about nearly 7%.
  • Natural Gas October contract: $2.60 per thousand cubic feet, down 1.4%. Year to date, gas is up more than 3%.

Prices are also under pressure on the expectation that oil production will rise in Libya. Factions in the North African country reached a deal Wednesday to appoint a new central bank governor. A political dispute over who should lead the bank has led to production disruptions.

The prospect of rising production is set against a backdrop of soft demand in China, the world's largest crude importer and second-largest consumer. Oil prices rallied earlier in the week after Beijing announced a new stimulus package.

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