Oil prices drop on Saudi comments

Crude oil prices were substantially lower on Monday, falling by more than $2 per barrel for one contract at one point in the session. The declines came as Saudi Arabia’s energy minister said that it was possible that the Organization of Petroleum Exporting Counties will leave productions quotas where they are when the oil cartel meets in March. Ministers from several OPEC member nations have said that they do not see any need for further cuts beyond the 1.7 million barrels a day already introduced.

March contracts for Brent crude, due to expire at the session’s close on Tuesday, dropped $2.04 to $56.97 per barrel late in the day in London, while Brent for April delivery declined $1.91 to $57.86 per barrel. West Texas Intermediate crude March contracts dropped $1.73 to $58.15 per barrel by early afternoon on the New York Mercantile Exchange. WTI briefly rose above $60 in Friday’s trade, the highest it has traded at since early January.