Oil prices drop
Friday, July 7 2000 - 04:00 AM WIB
Crude oil prices in the international market fell 7 percent on Thursday after a shocking decision from Saudi Arabia to increase its crude oil output by 500,000 barrels per day.
In New York, crude oil contracts for August delivery fell by $2.25 per barrel to $30.25.
Market players are now awaiting responses from other Middle Eastern countries, especially Kuwait and United Arab Emirate, following Saudi's decision to increase output. If Kuwait and UAE followed Saudi's step, crude oil prices would definitely continue to decrease.
Saudi decided on Monday to supply an additional 500,000 barrels of crude, despite the decision of the Organization of Petroleum Exporting Country to supply an additional 800,000 barrels per day.
Crude oil prices hit a 10-year high on March 7, when it hit 34.37 a barrel. (*)