Oil drops into bear market as Trump warns OPEC against supply cuts

WTI fell 7% on Tuesday

Tom Eckett
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Photos: iStockphoto/Gage Skidmore/Flickr/Creative Commons CC BY-SA 2.0
Image:

Photos: iStockphoto/Gage Skidmore/Flickr/Creative Commons CC BY-SA 2.0

Oil prices have continued their downward spiral this week after US President Donald Trump urged Saudi Arabia and OPEC not to cut their production.

Taking to Twitter on Monday, Trump said: "Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!" The comments caused West Texas Intermediate (WTI) to fall 7% to $55.7 a barrel, its largest one-day drop since September 2015, while Brent Crude suffered its twelfth consecutive drop on Tuesday, falling 6.6% to $65.5 a barrel. This means both benchmarks have now declined more than 25% since last month and are now in a bear market - defined as a 20% drop from a recent high. Opinion: The two key risks driving the oil pr...

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