Oil Prices Dropped Sharply On Friday As Traders Came To Grips Donald Trump’s Demands That Saudi Arabia Keep Oil Prices Low.
The U.S. benchmark, West Texas Intermediate futures, fell by as much as 7 percent at its lows of the day, briefly slipping below $50 a barrel. Despite rebounding a bit to $51 a barrel on Friday afternoon, the American crude grade is deeply in bear market territory, off by more than 30 percent from its October 3 close.
Brent crude, the global benchmark, is down 6 percent. It is also down by nearly a one-third from recent highs.
Donald Trump’s tweet thanking Saudi Arabia for the low price of oil highlighted the political pressure bearing down on the kingdom. Investors are increasingly skeptical that the Saudis will risk alienating the Trump administration by supporting plans to cut oil supplies to boost prices at the December 6th OPEC meeting in Vienna.- READ MORE