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Crude Oil Declines as Global Glut Outweighs Middle East Tensions

  • Saudi Arabia cuts ties with Iran after embassy attacked
  • Cushing crude inventories rise to record high, EIA data show
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Oil Rises as Saudi Arabia Cuts Ties With Iran

Rakteem Katakey and Moming Zhou
Updated on

Oil fell, erasing an earlier gain, as a global glut outweighed an increase in tension between Saudi Arabia and Iran.

The Saudi government cut ties with Iran following an attack on its embassy in Tehran by demonstrators protesting the execution of a prominent Shiite cleric. Prices last week capped the biggest two-year loss on record amid speculation a global glut will be prolonged as U.S. crude stockpiles expanded and the Organization of Petroleum Exporting Countries abandoned output limits.