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Oil Tumbles to Six-Year Low as OPEC Abandons Production Target

  • OPEC effectively has no limit on crude production, Iran says
  • Gasoline, diesel futures close at lowest level since 2009
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Oil Tumbles as OPEC Opens the Taps on Output Target

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Oil fell to the lowest level in more than six years amid speculation that a record global glut will be prolonged after OPEC effectively abandoned its longtime strategy of limiting output to control prices.

The Organization of Petroleum Exporting Countries will keep pumping about 31.5 million barrels a day, President Emmanuel Ibe Kachikwu said Friday after a meeting in Vienna. OPEC is setting aside its output quota of 30 million barrels a day, a target it’s breached the past 18 months, until members gather again in June. Declines accelerated as the dollar rose on prospects for higher U.S. interest rates. Gasoline and diesel also closed at the lowest levels since the financial crisis of 2008 that sent the country into a recession.