Oil Near $108 After Saudi Explosion Report Denied

West Texas Intermediate crude dropped to the lowest intraday level in three years as Saudi Arabia cut prices for crude exports to U.S. customers amid speculation that stockpiles increased. Brent extended losses in London.

Conflict-weary oil traders have been here before. As the world holds Russia responsible for the blatant rocket attack on a Malaysian airliner, raising the spectre of a showdown with one of the world’s largest oil producers, crude prices moved up just a couple of dollars on Thursday. On Friday, Brent crude fell US49¢ to US$107.40 a barrel, after hitting a session high of US$108.62.

A surge in U.S. oil production has pushed the country’s output to the highest level since 1992, threatening the dominance of the Organization of Petroleum Exporting Countries. The U.S. pumped 7.06 million barrels a day in the week ended Feb. 8, up 1 percent from the previous week and extending last year’s 19 percent gain, the Energy Information Administration said today. OPEC production fell to the lowest level in a year in January, the Paris-based International Energy Agency said today in its monthly report.

New York (AFP) - Oil prices slipped toward nearly six-year lows Tuesday after OPEC officials underscored the cartel's resolve to not cut output despite a supply glut and plunging prices.

London (AFP) - Oil prices slid Tuesday to the lowest points for more than five and a half years, plagued once again by a global supply glut, demand fears and the soaring dollar.US benchmark West Texas Intermediate for February tanked to $48.49 a barrel, touching a low last witnessed in late April 2009.

Brent crude oil slipped below $108 a barrel on Wednesday, extending five weeks of falls on signs of improving global supply. Oil prices have tumbled over the past month as output has risen, with Libya ramping up production, while tensions over Syria and Iran have eased, dampening worries of disruption to production from the giant Middle East oilfields.

Oil prices dropped to near $80 a barrel Monday in Asia, extending losses from Friday as a monthlong rally fizzled out. Benchmark crude for April delivery was down 59 cents to $80.09 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange.