Crude oil futures fell more than $3 on Wednesday morning, dropping below $97 per barrel, as the dollar surged against the Euro. The dollar’s strength helped drive oil buyers away and depressed oil prices. OPEC also agreed today to keep its current output steady. The group also said that “world oil demand is forecast to increase slightly” next year, but “this rise is expected to be partially offset by a projected increase in non-OPEC supply,” the Wall Street Journal reported.
In addition, the American Petroleum Institute said late Tuesday that crude stocks rose by 462,000 barrels.
Oil service stocks fell, with Schlumberger (SLB) falling 3.9% and Halliburton (HAL) dropping 2.8%. Hess (HES) fell 3.1%. Most of the major integrated companies like Chevron (CVX) were down between 1% and 2%.
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