Oil price drops 2% as output increases

Oil prices fell by 2% on Tuesday (Sept. 3rd), on the back of rising OPEC and Russian oil output as well as the protracted US-China trade dispute that has dragged on the global economy, Reuters reports.

US crude was down $1.26, or 2.3%, at $53.84 a barrel by 1152 GMT and Brent crude was down 96 cents at $57.70. 

“Oil will struggle to make substantial headway topside this week with no progress on trade talks or meetings even, soft data from Asia and a possible cracking of OPEC’s resolve to control production,” said Jeffrey Halley, senior market analyst at OANDA. 

Output from the Organisation of the Petroleum Exporting Countries (OPEC) rose in August for the first month this year as higher supply from Iraq and Nigeria outweighed restraint by Saudi Arabia and losses caused by U.S. sanctions on Iran. 

Russian oil production in August rose to 11.294 million barrels per day, topping the rate cap pledged by Moscow in a pact with other producers and hitting its highest since March, data showed on Monday. 

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