Crude oil futures dropped below $90 on Thursday. MarketWatch reported that this is the first time crude has dipped below the $90 mark since April 2013.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in November fell $1.17, or 1.3 percent, to $89.56, setting it on track for the lowest settlement price in over 17 months. November Brent crude on London's ICE Futures exchange lost $1.22, or 1.3 percent, falling to $92.91 a barrel.
MarketWatch noted that booming crude oil supplies have nowhere to go with demand for crude oil flagging. Analysts also speculated that another reason for the drop in the crude oil price was that Saudi Aramco, Saudi Arabia's national petroleum company, cut its official selling price on Wednesday for crude oil to the U.S., Europe and Asia. Binary Tribune reported that this news canceled out the positive sentiment drummed up by the optimistic Energy Information Administration (EIA) weekly US oil report.
"That [price cut] tells the market they [the Saudis] are not going to cut [production]. That was a signal to the market that the oversupplied conditions are going to continue for a while," said John Kilduff, founding partner of Again Capital in New York, in The Wall Street Journal.
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