Oil fell to a three-year low on Tuesday, which may have been prompted by price cuts in Saudi Arabia expanding the reach of a recent sell-off.
Bloomberg reported that West Texas Intermediate crude oil futures fell by 1.9 percent, declining to $77.28 per barrel as of 9:40 a.m. However, they had declined further earlier in the morning, dipping as low as $75.84. These changes led to overall declines in the Standard & Poor 500 Index and the Stoxx Europe 600 Index, each of which fell .2 percent in that time.
"Look at the price of oil way down — that tells you everything you need to know," Michael James, managing director of equity trading at Wedbush Securities Inc., told the news source in a phone interview. "There might be some important things that come out of the election, but none of them will be bigger than the momentum from earnings and the impact that the price of oil will have on market sentiment."
Reuters reported that additional oil figures were showing similar trends, as U.S. crude oil was seen trading downward by more than $2 per barrel, bottoming at $76.73 and Brent crude futures declined to $82.65.
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