Oil prices slid lower Monday, with Brent hitting a four-year low, on oversupply worries heightened by OPEC signals that producers have no intention of cutting output.
US benchmark West Texas Intermediate for November slipped eight cents, closing at $85.74, the lowest price since December 2012.
Brent North Sea crude for delivery in November, the international benchmark, dropped $1.32 to close at $88.89 a barrel in London trade, its lowest level since late 2010.
The market took on a "bearish tone" after recent comments from some members of the Organization of the Petroleum Exporting Countries showed complacency with the oversupply situation, said Matt Smith of Schneider Electric.
OPEC kingpin Saudi Arabia indicated it was "comfortable with price around $90," he said, adding that apparently "they are more about market share than price."
Iraq became the latest OPEC crude exporter to cut its prices after similar moves by Saudi Arabia and Iran.
"OPEC is still giving no indication that it might take steps to shore up prices," Commerzbank analysts said in a research note.
"Iraq is now the third important OPEC member to significantly lower its sales prices as compared with the international benchmarks," they added.
However, Kuwaiti Oil Minister Ali al-Omair said Sunday that he expects falling prices to recover during the Northern Hemisphere winter -- but OPEC was unlikely to counter the slide in the short term.
"We expect (oil prices) to increase in the winter season or at least preserve its current level," said Omair, cited by the official KUNA news agency.
The minister also said he believes that oil will not drop below $76-77 a barrel, which is the production cost in Russia and the United States.
The decline was expected due to geopolitical factors, a rise in supplies and negative forecasts for global economic growth, according to Omair.
He said Kuwait has not received any invitation for an emergency OPEC meeting to discuss prices but would attend if one were scheduled.
Venezuela on Friday said it would request such an emergency OPEC meeting.
"We are going to ask for an extraordinary OPEC meeting," said Foreign Minister Rafael Ramirez, who is the nation's former oil minister and ex-head of the public oil company PDVSA.
"We need to try to coordinate some sort of action to stop falling oil prices," he added.
GMT 18:36 2017 Tuesday ,26 December
Scenting a recovery, oil producers ratchet up spendingGMT 20:43 2017 Monday ,25 December
Oil markets will witness balance in 2018: Iraqi Oil MinisterGMT 16:17 2017 Sunday ,24 December
Iraq invites bids for new oil pipelineGMT 14:26 2017 Friday ,22 December
Energy prices bump key US inflation index up in NovemberGMT 17:59 2017 Tuesday ,19 December
Japan trade surplus drops sharply on higher oil importsGMT 17:31 2017 Thursday ,14 December
Energy costs push US consumer inflation higher as Fed meetsGMT 15:30 2017 Wednesday ,29 November
Shell resumes all-cash dividend as oil price recoversGMT 13:22 2017 Sunday ,26 November
Chinese demand teaser to weigh on Vienna oil summitMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor