22:43 GMT19 October 2020
Listen Live
    US
    Get short URL
    7213
    Subscribe

    WASHINGTON (Sputnik) - The United States will withstand attempts by "state actors" to manipulate oil markets, Energy Department spokeswoman Shaylyn Hynes said in a statement. Earlier, US crude prices suffered a 25 percent drop on fears of a glut sparked by a battle for market share between major oil producers Saudi Arabia and Russia.

    "The Trump Administration is closely monitoring…. the fallout from last week’s OPEC+ meeting on global oil markets. These attempts by state actors to manipulate and shock oil markets reinforce the importance of the role of the United States as a reliable energy supplier to partners and allies around the world", Energy Department spokeswoman Shaylyn Hynes said Monday.

    "The United States, as the world’s largest producer of oil and gas, can and will withstand this volatility", Hynes added.

    Oil prices had their biggest one-day drop on Monday in three decades with US crude losing 25 percent after global oil producers failed to agree on deeper production cuts to offset weak demand caused by the coronavirus.

    Fears that the virus' spread could lead to a global recession also led to a stampede by investors fleeing from risk, worsening the selloff in oil.

    West Texas Intermediate (WTI), the New York-traded benchmark for US crude prices, settled down $10.15, or 24.6 percent, at $31.13 per barrel on Monday, its largest one-day slump since 1991, data showed.

    US crude earlier fell to $27.34, its lowest since February 2016. Year-to-date, it is down about 50 percent, just slightly behind the 53 percent it lost for all 2008, the year that spawned the Great Recession.

    Brent, the London-traded global benchmark for crude, settled down $10.91, or 24 percent, at $34.36 per barrel. Brent hit a four-year low of $31.02 earlier.

    Oil prices collapsed after Russia and the Saudi-led OPEC, or Organization of the Petroleum Exporting Countries, failed to agree on deeper production cuts to mitigate demand lost to the coronavirus crisis.

    Related:

    Oil-Producers Lose $10Bln Due to Falling Prices Over Coronavirus Outbreak - IMF Managing Director
    Russia to Curb Foreign Currency Purchases to Minimum Amid Slight Oil & Gas Price Rebound
    Oil Prices Fall by 30% Amid OPEC+ Deal Failure - Market Data
    Fitch Ratings Reveals Impact of Oil Price Slump on Russia's Budget, Global Shale Industry
    Oil in Turmoil: Prices Could Collapse to as Little as $20 a Barrel, Goldman Sachs Warns
    Tags:
    manipulation, oil prices, US Energy Department
    Community standardsDiscussion