As the FBI announced a fresh probe into Hillary Clinton’s emails Friday, the stock market sentiment turned negative, with stocks reversing gains made the day before. But crude oil prices were hit with a double whammy as a meeting of the Organization of the Petroleum Exporting Countries (OPEC) could not agree on production cuts, again.
Global benchmark Brent crude prices fell 1.51 percent to $49.71 a barrel, the lowest since Sept. 30. West Texas Intermediate, the U.S. benchmark, fell 2.05 percent, the $48.7 a barrel price just a cent more than the previous low on Oct. 4.
During the ongoing meeting in Vienna, OPEC members Iran and Iraq disagreed with the organization’s data on production levels and refused to limit their crude output. Iraq, the second-largest producer in the cartel, is reportedly asking for exemptions from any production limits due to disruptions caused by the insurgency linked to the Islamic State terrorist group.
Other members, including Iran, Libya and Nigeria already have exemptions. While Libya and Nigeria have their own insurgencies to deal with, Iran has been ramping up production ever since international sanctions against it were lifted earlier this year.
Andy Lipow, president of Lipow Oil Associates, told the Wall Street Journal: “The market senses no progress, whereas before they gave it some probability that OPEC may come to an agreement.”
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