Crude Oil Plunges As Saudis Signal Resolve

Crude oil prices crumbled Wednesday, dropping back near 6-year lows as Saudi officials sent a clear signal they intend to keep pumping oil at a breakneck pace.

Saudi Arabia won’t change its current production policy, a government minister told WSJ.

Meanwhile, Energy Information Administration reported U.S. crude inventories rose by 2.6 million barrels last week. Expectations were for a decline.

The American Petroleum Institute, an industry group, reported Tuesday that U.S. crude-oil inventories rose by 2.9 million barrels in the latest week.

Nymex February crude oil plunged $1.27, or 3.4%, to end at $36.60 a barrel. A move below $34 would take oil to its lowest in 11 years.

The material has been provided by InstaForex Company –