Oil fell from the highest level in more than three years as U.S. President Donald Trump put pressure on Saudi Arabia to increase output.
Futures in New York dropped as much as 2.2 percent after a 1 percent gain Friday. Trump tweeted on Saturday that the Saudi king agreed to effectively boost oil production to its maximum capacity in response to turmoil in Iran and Venezuela. While the White House backed off his assertion that evening, Trump demanded in a TV interview aired Sunday that OPEC stop what he called its manipulation of the crude market and insisting the group pump more.
West Texas Intermediate crude for August delivery declined as much as $1.64 to $72.51 a barrel on the New York Mercantile Exchange and traded at $73.56 as of 8:52 a.m. in Tokyo. The contract rose 70 cents to $74.15 on Friday. Total volume traded was more than double above the 100-day average.
Brent for September settlement fell as much as 1.6 percent to $77.99 a barrel on the London-based ICE Futures Europe exchange. The August contract, which expired Friday, added 5.2 percent last week. The global benchmark traded at a $6.74 premium to WTI for the same month.
Source : Bloomberg