Crude oil futures dropped for a fourth consecutive session on Tuesday as a consequence of remarks uttered by the oil minister of the top nation of the Organization of Petroleum Exporting Countries, Bloomberg reports.
Also tugging down the price of the energy commodity on Tuesday was the U.S. granting additional exemptions for buyers of crude from Iran, which is eyed for its nuclear ambitions. Oil Minister Ali al-Naimi of Saudi Arabia said that OPEC is likely to require an increased production maximum.
"The comments from yesterday are surprising and suggest Saudi Arabia isn't willing to reduce production," analyst Carsten Fritsch with Commerzbank in Frankfurt told Bloomberg on Tuesday. "Without a production cut, there will be considerable oversupply in the market in the second half, which will put further pressure on prices."
At 8:12 a.m. on Tuesday, crude oil futures fell 1.04 percent, a $1.02 drop to $96.98 per barrel.
The Wall Street Journal reports waning optimism for the bailout for the banking system of Spain also pulled down the price of oil. The nation hosts the euro zone's fourth-largest economic system.