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Oil down on Iran surge and U.S. production

Monday, January 09, 2017 - 01:23

Oil fell 2 percent on Monday as signs of growing U.S. production outweighed optimism that many other producers, including Russia, were sticking to a deal to cut supplies in a bid to bolster the market. Laura Frykberg reports.

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Down, up and back down again. OPEC may have hoped for more stability since cutting production. But outsider Iran is not playing ball. It's recently sold more than 13 million barrels of oil. Sending Brent Crude plunging forty cents since the previous close. And Western Texas by just as much. (SOUNDBITE) (English) DARREN SINDEN, INDEPENDENT MARKET ANALYST, SAYING: "The likelihood or the Saudis and the Iranians seeing eye to eye was very limited." It's not just Iran threatening to undermine the deal. U.S. energy companies have increased drilling activity for the tenth week in a row. Sending oil output up 4 percent to almost 8.8 million barrels per day. (SOUNDBITE) (English) DARREN SINDEN, INDEPENDENT MARKET ANALYST, SAYING: "American crude products are not exported generally at the moment but that is something that can change under Trump. I think the bigger picture remains what the Americans do." Prices have generally been higher this year after a period of record lows. In Mexico, that's helped push up petrol prices by up to 20 percent since last week. This is one of many protests against that, showing how an attempt to end one crisis has created another elsewhere.

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Oil down on Iran surge and U.S. production

Monday, January 09, 2017 - 01:23