US Crude Tumbles 5%, Wall Street Selloff Offsets Rig Data

U.S. crude futures's front-month settled down $2.22, or 4.8 percent, at $44.68 a barrel.

The front-month in Brent, the global oil benchmark, settled down $1.61, or 3.3 percent, at $47.47.

Gasoline fell 1.4 percent, while ultralow-sulfur diesel slumped 2.5 percent in an extended selloff across the petroleum complex.

Oil was down early from early in the day after OPEC member Kuwait said it would take time for the oil market to balance, indicating that the producer group would continue defending market share over production cuts to bolster prices.

Other OPEC sources said they expect oil to rise no more than $5 a barrel a year to reach $80 by 2020.

Iran's deputy oil minister Rokneddin Javadi, meanwhile, reiterated Iran's plans to regain its oil production share once nuclear-related sanctions are removed against Tehran, adding that new oil contracts would be unveiled in coming weeks.

(Additional reporting by Karolin Schaps in London and Henning Gloystein in Singapore; Editing by Marguerita Choy and Andrew Hay)


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