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Crude Drops as Saudi Oil Minister Shatters Hope For Producer Cuts

Crude futures settled with a sharp loss on Tuesday after Saudi Arabia’s oil minister, Ali al-Naimi, shattered any hopes that producers would cut back on output to help alleviate the world’s excess supplies. April West Texas Intermediate crude fell $1.52, or 4.6%, to settle at $31.87 a barrel on the New York Mercantile Exchange.

At the IHS CERAWeek conference in Houston Tuesday, al-Naimi said there is “no sense wasting our time seeking production cuts.” He also said he has no concerns about demand, so he welcomes additional supplies, including shale oil.