Oil futures traded down by $1.50 or more in pre-market trading after a rally in U.S. oil prices and a rebound in demand from Saudi Arabia’s government.
Oil futures are a major trading tool and a key component of oil producers’ profit margins.
Oil futures markets are dominated by the major U.K. and European oil producers, such as Royal Dutch Shell, BP, Chevron and Total.
The move in oil prices follows U.N. sanctions on Iran’s nuclear program and Saudi Arabia and other OPEC countries’ actions to curb production and oil imports.
The sanctions are being implemented after Iran said it would suspend production of some Iranian oil.
The United States and other major oil producers have imposed further restrictions on oil imports from Iran.
S.-Saudi oil price trade was down $1 per barrel, or 1.5 percent, on the previous day.
Brent crude, the international benchmark for oil, was down 3.4 percent, or $46.75 per barrel.
Brent futures, the benchmark for U.E. oil, were down $2.60, or 4.2 percent, at $106.40 per barrel on Wednesday.
Brent’s slide on Wednesday was the biggest since January 2014, when Brent crude plunged $2 per barrel to $104.40 a barrel.
U.S./European oil futures fell by about $1 on Wednesday, or 2 percent, after a $5.00 drop in U,S.
crude futures and a drop in the global oil market’s appetite for oil.
Brent, the global benchmark for Brent crude oil, fell by more than $2 a barrel on Tuesday.
Brent lost about $2 on Wednesday as the world’s benchmark for crude prices declined for a fifth day.
U.-Korea, Russia, Canada, Brazil and other large producers in Europe also dropped prices by more on Wednesday to offset declines in oil.
European producers were able to keep their price forecasts steady at the current level of $108.60 a barrel because of U.
Brent’s slide, the Reuters news agency reported.
U.U., which supplies about 80 percent of the world oil, dropped from its recent peak of $125.40 to $116.30 a barrel after Saudi Arabia announced plans to limit oil exports.
The Brent crude was down more than 7 percent from its previous peak of more than more than three times Brent.
The oil market is also still recovering from last week’s oil shock, when OPEC countries cut output in response to falling demand for oil from Russia, Venezuela and Iran.
U-Brent fell by $3.40, or 0.6 percent, to $115.40.
Brent was down 0.3 percent from a high of $114.60.
The markets have been largely calm since then, with prices mostly trading at or near record highs.
The market was largely calm Wednesday, though prices rose for the first time on Tuesday after a sharp drop in crude prices on Tuesday, and they rebounded on Wednesday from a low of $98.80 a barrel to a high reached on Tuesday of $109.70.
U-Bridget crude oil futures were down by 1.3 cents, or about $5, on Wednesday afternoon.
Brent Brent crude futures were up $2, or 5 cents, on Tuesday to $108 a barrel, the highest level since the beginning of the year.