Crude oil falls sharply as Kuwait and Saudi Arabia look to resume production in Neutral Zone
|Citing Kuwait's state news agency, KUNA, Reuters in the last hour reported that Saudi Arabia's energy minister visited Kuwait to discuss resuming oil production in the Saudi-Kuwait Neutral Zone.
"The Saudi–Kuwaiti Neutral Zone, or Divided Zone, is an area of 5,770 square km between the borders of OPEC members Saudi Arabia and Kuwait that was left undefined when the border was established in 1922," Reuters explained.
With the initial market reaction, the barrel of West Texas Intermediate came under a renewed selling pressure and was last seen trading at $55.50, losing nearly 3% on the day. Similarly, Brent oil slumped below $63 and is now down around 1.3% on a daily basis.
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