International oil prices fell sharply on the 2nd, falling below $40 a barrel
Xinhuanet, New York, December 2 (Reporter Huang Jihui) Affected by factors such as rising crude oil inventories in the United States and the rising dollar, international oil prices fell sharply on the 2nd, with oil prices in New York falling below $40 a barrel.
Data released by the US Energy Information Administration on the 2nd showed that US commercial crude oil inventories increased by 1.2 million barrels last week to 489.4 million barrels. Current inventory levels are 110.1 million barrels higher than a year earlier. The data also showed that U.S. crude oil production averaged 9.2 million barrels per day last week, an increase of 37,000 barrels.
Oil prices also weighed on the day's gains against most major currencies, with a stronger dollar making dollar-denominated oil less attractive as an investment.
The market is concerned about OPEC's ministerial meeting to be held on the 4th. Although some oil-producing countries such as Venezuela have called for production cuts to protect prices, the market generally expects that OPEC's ministerial meeting will not introduce production cuts.
As of the close of the day, light sweet crude oil futures for January 2016 delivery on the New York Mercantile Exchange fell $1.91 to close at $39.94 a barrel, a decrease of 4.56%. Brent crude futures for January 2016 delivery fell $1.95, or 4.39%, to settle at $42.49 a barrel in London.