U.S. equities and stock exchange traded funds dipped Tuesday as crude oil prices declined for the sixth consecutive day. The markets were also on shaky ground ahead of the highly anticipated Federal Reserve announcement tomorrow.
The energy sector was among the worst performers, with the Energy Select Sector SPDR (NYSEArca: XLE), the largest equity-based energy exchange traded fund, down 1.4% Tuesday as West Texas Intermediate crude oil futures decreased 1.9% to $47.5 per barrel.
Oil prices fell to a three-month low after the Organization of Petroleum Exporting Countries announced an increase in global crude oil stockpiles and a surprise surge in production from Saudi Arabia, the organization’s largest member, report Yashaswini Swamynathan and Tanya Agrawal for Reuters.
Moreover, some are worried that rising production in the U.S. could offset efforts to diminish the global supply glut that depressed oil prices, the Wall Street Journal reports. The falling crude prices have already affected other areas of the market.