U.S. crude oil fell sharply and abruptly in the mid-morning trade on Tuesday, after briefly exceeding $ 75 per barrel for the first time since November 2014
Earnings on Tuesday extended the rally last week, which saw an increase in oil by more than 8 percent and a Brent increase of 5 percent, the increases were driven by a cut in a major Canadian oil sands installation and the growing tensions in the long conflict in Libya that generated new concerns s about the country's exports.
To exacerbate these surprise events, a Trump administration official told reporters that US diplomats are pushing oil buyers to cut all purchases of Iranian crude in early November. A senior official at the State Department reaffirmed the tougher-than-expected policy on Monday.
Analysts pointed to a report from Saudi Arabia's state media agency saying that the kingdom's Council of Ministers, chaired by King Salman bin Abdulaziz, is ready to deploy the nation's additional capacity to add more oil to the market. President Donald Trump has asked the king to increase production by up to 2 million barrels per day.
Higher production from Saudi Arabia, Russia and the United Arab Emirates, together with the increase in US exports, will likely offset the disruptions in Libya, Venezuela and Iran, said Roberto Friedlander, head of energy trading at Seaport Global Securities ,
"We are overbought at the top of the range here and WTI has to roll towards $ 68 to $ 71. I firmly believe that we're going to see $ 62 to $ 63 before we see $ 80," he said.