“Crude oil prices saw a renewed decline as OPEC output rose to a three-year high in November, reinforcing consternation that the global oil market is going to remain oversupplied for a longer time”, said Bernard Aw, market strategist at IG Markets in Singapore.
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Production in Saudi Arabia slipped by 25,200 barrels a day to 10.13 million a day in November, OPEC’s report showed.
The IEA said the pace of stock-building should roughly halve next year and that it was very unlikely that global storage capacity would be filled.
In particular, oil tanked to a seven-year low on Monday after the Organization of the Petroleum Exporting Countries (OPEC) failed to address the growing supply glut.
“In particular, we see potential for a temporary undershoot by prices to 2008 financial crisis lows around $36 per barrel for Brent”, BMI said on Thursday.
US spot natural gas prices have fallen below $2 per million British thermal units for the first time on record this week and prices are down 46 percent this year, down by half since mid-2014 when the oil rout began, and 84 percent lower than their 2008 peak.
Futures of Brent and US crude’s West Texas Intermediate struck February 2009 lows for a fourth day in a row in continued fallout from an OPEC meeting last week that abandoned price support measures.
The world’s largest oil cartel triggered a prolonged downturn in crude prices last November by ignoring calls to slash production in an effort to maintain market share.
Crude oil prices continue to rock the global markets.
Brent for January settlement slid as much as 35 cents, or 0.9 per cent, to US$39.38 a barrel on the London-based ICE Futures Europe exchange. For 2016, it expects consumption to grow by 1.2-million barrels a day, not almost enough to sop up the excess in production and reduce inventories. Demand growth peaked at 2.2 million barrels a day in the third quarter, but there are preliminary signs that it has eased to 1.3 million barrels a day.
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On overviewing Iraqi volumes by an external press release, last month an increment was observed in oil production i.e. 247,500 barrels to 4.3 million/day.
