The price of U.S. crude oil plummeted over 4% on Wednesday, dropping below $70 a barrel, marking its lowest level since late June. This decline is happening despite the production cuts implemented by leading oil-producing nations.

U.S. Benchmark Falls

The U.S. benchmark, West Texas Intermediate, experienced a significant drop of 4.07%, reaching $69.38 per barrel. Similarly, the international benchmark, Brent crude, fell by 3.76% to $74.30 per barrel, also hitting its lowest level since June.

Persistent Weakness in Oil Prices

Dow Jones Market Data reveals that oil prices have fallen more than 13% this year alone. Surprisingly, they have continued to weaken for the past five consecutive trading sessions, even though the Organization of the Petroleum Exporting Countries (OPEC) and its allies recently agreed to extend production cuts until the first quarter of 2024.

OPEC+ Strives to Stabilize Supply

Under the coalition known as OPEC+, top oil-producing countries have been actively working on tightening supplies amidst the ongoing conflicts in the Middle East. However, even with these efforts, the downward trend in oil prices persists.

Reduction in Gasoline Pump Prices

The impact of declining oil prices can also be observed at the gas pump. As of 3:15 p.m. ET, gasoline prices averaged $3.187 per gallon. This represents a decrease of 21.4 cents compared to November's average price and a decline of 14.4 cents compared to last year's average price of $3.331, as reported by GasBuddy.

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