Oil Futures Take Major Blow Due to Output Uncertainty

Oil prices dropped on Tuesday, finishing with huge losses, amid uncertainty about the outlook for production policies by major crude producers.

Yesterday, the Organization of the Petroleum Exporting Countries (OPEC) and its OPEC+ allies could not reach an agreement on the output policy starting August.

Brent crude futures for September delivery dropped by $2.63, or 3.41%, to close at $74.53 per barrel.

This is the lowest closing level for the global benchmark most-active contract since June 18.

Meanwhile, the West Texas Intermediate (WTI) crude futures for August delivery lost $1.79, or 2.4%, to finish at $73.37 per barrel. Earlier in today’s session at the New York Mercantile Exchange (NYMEX), WTI futures hit their highest since November 2014 at $76.98.