Crude prices drop on higher OPEC output

Crude oil prices dropped on Tuesday on the news that OPEC has increased output even ahead of its previously announced 500,000 barrel per day hike, which was scheduled to begin on 1 November.

In addition, there was some relief in the dispute between Turkey and Kurdish-controlled northern Iraq, a region that is home to a significant amount of oil production.

On Monday, Turkey promised to exhaust all diplomatic avenues before striking at Kurdish rebels in northern Iraq, while on Tuesday Iraq said it would close the rebels’ offices and do all it can to stop the rebels from attacking Turkish troops.

December contracts for West Texas Intermediate dropped 75 cents to $85.27 per barrel on the New York Mercantile Exchange, while Brent crude fell 42 cents to $82.85 per barrel on the ICE Futures Europe exchange in London.

Nymex November gasoline was down 2 cents to $2.11 per gallon, while December heating oil was 1 cent lower to $2.32 per gallon and December natural gas fell 6 cents to $7.47 per million British thermal units.