NEW YORK — Oil futures fell sharply Tuesday, dropping below $100 on the possibility that OPEC will boost production and on expectations that crude inventories are continuing to rise.
Light, sweet crude for April delivery fell $2.93 to settle at $99.52 on the New York Mercantile Exchange after dropping as low as $98.87 earlier. It was crude’s first move below the $100 mark this week and its lowest settlement price since Feb. 25.
Chakib Khelil, president of the Organization of the Petroleum Exporting Countries, said the cartel is shying away from boosting production because of expectations that global demand for crude will fall during the second quarter. But some investors are betting the cartel will boost production to bring prices down.
OPEC ministers, who meet today, are worried soaring oil prices will help push the U.S. into a recession, which would further cut demand for crude.
Prices were also pressured by expectations that domestic crude inventories rose by 2.3 million barrels last week, according to analysts surveyed by Dow Jones Newswires. The Energy Department’s Energy Information Administration will issue its weekly inventory report today.
