Oil Prices Keep Falling After Saudits’ Decision to Cut Output
Oil fell for a 12th day, for this asset it’s the longest losing streak on record, after U.S. President Donald Trump criticized Saudi Arabia’s plan to cut output. Prices “should be much lower based on supply,” Trump said in a tweet, after Saudi Energy Minister Khalid Al-Falih said producers need to cut about 1 million barrels a day (bpd). Meanwhile, OPEC said it sees demand for its own crude falling even faster than expected in 2019 as a slowing global economy shortens demand and rival supplies surge. Non-OPEC supply is expected to rise by 2.23 million bpd, i.e. 120,000 bpd more than previously thought.
Oil has fallen from a four-year high reached in early October as fears of a supply glut deepen following a U.S. decision to grant waivers to some buyers of sanctioned Iranian crude. With rising American output, and a trade war with China Trump’s Twitter intervention only added to speculation surrounding OPEC’s next move. The burning issues of oil supply and the volume of deliveries to the global market will be atop of agenda of the OPEK+ summit to be held in Vienna on Dec. 6.
WTI for December delivery declined as much as $1.69 to $58.24 a barrel on the New York Mercantile Exchange. The contract fell 26 cents on Monday to the lowest close since Feb. 13. Brent futures for January settlement fell $1.44 to $68.68 a barrel on the London-based ICE Futures Europe exchange, after dropping 6 cents on Monday to a seven-month low.