Crude oil is getting slammed after OPEC reportedly decides not to cut output

Crude oil prices slumped after a report crossed that the 12-member oil cartel OPEC is not cutting its production levels.

According to Reuters, the group decided not to cut its production target. Bloomberg reported that the group increased its production ceiling to 31.5 million barrels from 30 million barrels per day, excluding production from Indonesia.

In New York, West Texas Intermediate crude futures fell nearly 2% to as low as $40.16 per barrel.

There had been reports earlier this week about division among OPEC members about whether or not to cut output, amid a growing supply glut that is keeping oil prices lower.

Here’s a chart showing the drop in WTI on Friday after the news crossed:

NOW WATCH: Why Korean parents are having their kids get plastic surgery before college

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at