Crude Falls Below $35 per Barrel in New York for First Time Since 2009
Oil held gains after rebounding from the lowest price since February 2009 as the U.S. Congress sought to advance on a deal to allow unfettered crude exports for the first time in 40 years.
Futures were steady in New York after rising 1.9 percent Monday, the first increase in seven days. Senate leaders faced resistance from some Republicans and House Democrats, who were willing to discuss lifting trade restrictions depending on concessions they’d get in exchange, according to a Democratic leadership aide. Oil prices won’t continue at current levels, OPEC Secretary-General Abdalla El-Badri said in New Delhi on Tuesday.
Oil is trading at levels last seen during the global financial crisis after the Organization of Petroleum Exporting Countries effectively abandoned output limits as it sought to defend market share. Hedge funds and other large speculators raised bets on falling U.S. crude prices to a record while the International Energy Agency predicted the market will remain in surplus at least until late 2016.
“If the U.S. starts to ship its crude to Asia, this will further intensify competition with OPEC producers,” Kang Yoo Jin, a commodities analyst at NH Investment & Securities Co. in Seoul, said by phone. If oil drops to about $30 a barrel, OPEC “will find the need to protect prices as internal discord and conflicts among themselves persist.” (Read more from “Crude Falls Below $35 per Barrel in New York for First Time Since 2009” HERE)
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