WTI drops for a 10th straight day, dipping below US$60 to a near nine-month low

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TORONTO — Crude oil prices lost ground for a tenth consecutive day to dip to near nine-month low.

West Texas Intermediate lost 1.2 per cent or 72 cents to reach US$59.95 in early afternoon trading.

Since its peak last month, WTI is down about 22 per cent for a fifth consecutive weekly drop.

A glut of oil production is the main cause of the declines in prices of WTI and Brent crude.

The United States has taken the crown as the world’s leading oil producer after output increased by two million barrels per day over the last year to reach 11.6 million bpd, the swiftest annual rise on record.

At the same time, OPEC is over-producing and sanctions have been watered down against Iran as the U.S. granted waivers on the sanctions to eight countries over concerns that a complete end of Iranian imports would cause economic disruptions.