Oil fell for the sixth straight day on Friday as tensions continue to rise between Saudi Arabia and Iran and reports showed a surge in U.S. crude inventories.
At last week’s OPEC meeting meant to work out details of production cuts ahead of the next OPEC meeting later this month, Riyadh, Saudi Arabia threatened to raise oil output in order to bring prices down if Tehran, Iran refused to limit its oil production.
According to Reuters, analysts also said markets were slowing by traders pulling out money from futures ahead of the presidential election.
But the fundamentals of the market are generally weak, according to traders, including a surge in U.S. crude stocks, a decrease in demand growth, and doubts relating to OPEC and non-OPEC agreeing to cut production.
Reuters reported that crude oil stockpiles in the U.S. rose more than 14 million barrels last week, which is the largest build on record.