Oil Prices Tumble Around 3 Percent
Oil prices fell around 3 percent on Thursday as panic gripped financial markets following the arrest of Huawei Technologies Co.'s chief financial officer in Canada over potential violations of U.S. sanctions on Iran.
Global benchmark Brent crude fell 2.9 percent to $59.78 per barrel, while U.S. West Texas Intermediate (WTI) crude futures were at $51.30 per barrel, down a little over 3 percent from their last close.
Stock markets across Asia and Europe fell, and U.S. equity futures also tanked as the arrest sparked worries that trade tensions between the U.S and China will not be resolved anytime soon.
China urged Canada to release Meng Wanzhou and said it firmly opposes and strongly protests over such kind of actions, which seriously harm the human rights of the victim.
Traders are also digesting the latest remarks from Saudi Arabia's energy minister that a cut of 1 million barrels per day would be enough for OPEC and its allied oil producers.
There were indications that the influential oil cartel would curb output by at least 1.3 million barrels per day at today's OPEC meeting in Vienna.
Crude oil futures failed to hold earlier gains and settled lower on Wednesday after the American Petroleum Institute reported late Tuesday that U.S. crude inventories rose by 5.4 million barrels in the week ended November 30.
The Energy Information Administration will publish official stock data later in the day.
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