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Oil price settles down on Tuesday

Published 12/06/2016, 04:00 PM
Updated 12/06/2016, 04:23 PM
Brent, West Texas both decline.
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Investing.com - On Tuesday, light, sweet crude for January delivery settled $1.06 cents down, or -2.05%, to $50.73 a barrel on the New York Mercantile Exchange (NYMEX).

The loss halted what was a four-day winning streak for West Texas Crude Oil.

Brent Oil settled down to $53.70 a barrel, a decline of 2.24%, or $1.23.

Prices this week had reached yearly highs.

Oil futures during the last four trading sessions increased in price by 15% after OPEC’s decision to cut output by 1.2 million barrels, nearly 1% of global supply.

But worries over whether the Organization of Petroleum Exporting Countries would maintain the agreement, made last week by its members.

OPEC members are known for going their own way to increase market share or accomplish other strategic goals after publicly reaching a pricing or production pact.

Concern about domestic oil production and inventory in the U.S. is also making news which is influencing the domestic market.

The president and CEO Jack Gerard of the oil industry lobbying group, API, called this week on President-elect Donald Trump to "restore the rule of law" in America's regulatory regime and make the approval of the Dakota Access Pipeline a top priority when he takes office.

“Modernizing our nation’s energy infrastructure benefits American consumers by keeping energy affordable, creating well-paying American jobs, and improving our environment,” said Gerard, based in Washington D.C.

“Moving forward, I am hopeful President-elect Trump will reject the Obama administration’s shameful actions to deny this vital energy project, restore the rule of law in the regulatory process, and make this project’s approval a top priority," Gerard concluded. “I am troubled, though not surprised, that the Obama administration is again putting politics over sound public policy and ignoring the rule of law."

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