Oil Takes a Tumble as Concerns Rise Over Production Cuts | NBC New York

Oil Takes a Tumble as Concerns Rise Over Production Cuts

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    In this file photo, a derek pumps in a oil field January 15, 2003 near the Saudi Arabian border with Kuwait. The desert kingdom, which accounts for about a third of OPEC's output, is questioning an informal agreement made in September to trim production. The price of crude fell about 4 percent Tuesday as it appeared uncertain that a cut might be agreed upon.

    Stocks closed slightly higher on Tuesday, boosted by health-care companies like UnitedHealth Group, as investors digested falling oil prices ahead of a key OPEC meeting.

    The Dow Jones industrial average closed about 25 points higher. CNBC reported. The S&P 500 gained 0.1 percent while the Nasdaq composite outperformed, closing 0.2 percent higher and hitting a new intraday high of 5,403.86.

    In energy, oil prices fell sharply after it seemed like a deal to reduce oil production among OPEC nations was starting to fall apart ahead of their meeting Wednesday in Vienna.

    Benchmark U.S. crude fell $1.85, or 3.9 percent, to close at $45.23 a barrel in New York. Brent crude, used to price international oils, tumbled $1.86, or 3.9 percent, to close at $46.38 a barrel in London, The Associated Press reported.