Price of oil down 2.5 percent on high global supplies, unlikely OPEC cut

Economic Indicators Associated Press

The price of oil took another sharp tumble Thursday as it appeared increasingly unlikely that OPEC members will cut production to staunch a plunge in prices that is entering its fifth month.

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Benchmark U.S. crude was down 2.5 percent to $75.30 Thursday afternoon. It is down 30 percent since late June to its lowest level since September of 2010.

Brent crude, a benchmark for international crudes that is closely correlated with the price of gasoline in the U.S., was down $2 to $78.38, also its lowest level in four years.

Global supplies are ample and demand for crude weak. But based on recent statements from members of OPEC, which is meeting later this month, the cartel seems unlikely to cut production in an effort to stem the drop in prices.