Oct. 11 (UPI) — Crude oil prices continued to fall along with the stock market Thursday while President Donald Trump had strong words for countries that ignore U.S. oil sanctions.
Brent prices fell more than $ 1.83 to $ 81 a barrel in mid-day trading while WTI prices fell $ 1.54 to $ 71. This after both oil benchmarks lost nearly $ 2 on Wednesday.
The Dow Jones Industrial Average fell more than 800 points Wednesday, the third largest drop in history.
The prices are being driven up in part because crude oil inventories continue to rise, meaning there’s a plentiful supply. On Thursday, the Energy Information Administration reported a 6 million barrel increase in crude inventories from the previous week.
The American Petroleum Institute reported a 9.75 million barrel increase in U.S. crude oil inventories.
OPEC Secretary-General Mohammad Barkindo said the oil cartel “remains ready to keep oil markets fully supplied.” The rapid increase in prices was more about perception of a supply shortage than real fundamentals, he said.
As prices fall, President Donald Trump doubled down on countries like India and China, who have indicated they might defy sanctions against buying Iranian crude oil, which go into effect Nov. 4.
“We will take care of them,” he said.
Earlier this week, it was announced that the United States would grant waivers on a temporary basis so countries could ween off of Iranian oil. India has its own oil requirements to fulfill and Iran is that country’s third largest supplier behind Iraq and Saudi Arabia.
The sanctions are meant to isolate the Iranian regime to force them back to the negotiating table for a new nuclear agreement.