Crude Tumbles as Record U.S. Output Stokes Oversupply Anxieties
- Weekly output tops 10 million barrels a day for the first time
- Oil market volatility swings to highest since November
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Oil posted the biggest loss in two months as record crude production from U.S. fields reignited worries that supplies will swamp demand.
Futures slid 2.5 percent in New York. Crude output from American wells jumped to 10.25 million barrels a day last week, vaulting the U.S. into the elite of world producers alongside Saudi Arabia and Russia. With production set to climb even higher later this year, the Saudi- and Russia-led alliance of other major suppliers will come under renewed pressure to reconsider self-imposed output caps aimed at eroding a glut.