Oil extends record losing streak as Trump blasts Saudi's plan

Oil extends record losing streak as Trump blasts Saudi's plan

Oil extends record losing streak as Trump blasts Saudi's plan

Oil prices dipped in overseas markets on Monday, despite indications from major producers they may cut output. Novak showed no sign he was ready to act immediately and Vagit Alekperov, the CEO of Russia's second-largest oil producer Lukoil PJSC, said there's no need to cut output now.

Iraqi energy minister spokesman Assem Jihad told AFP his country, also an OPEC member, was hoping for "any decision that would help balance and stabilise the market".

The group's caution arises partly from the unpredictability of Iranian supply.

Washington has granted 180-day waivers to Iran's eight biggest buyers, who imported over 80 percent of Iran's oil exports a year ago. That confounded a market that was anticipating a stricter enforcement.

Futures in NY slid 0.8 percent to settle at $60.19 a barrel on Friday, a day after falling into a bear market on concerns growing supplies will overwhelm the market, as the USA offered nations waivers to continue buying Iranian oil.

The UAE's Mazrouei said the goal of OPEC and non-OPEC cooperation was to strike a balance in the market. "The committee reviewed current oil supply and demand fundamentals and noted that 2019 prospects point to higher supply growth than global requirements", it said in a statement.

The sanctions lifted supply concerns and concerns over economic slowdown, which may curb fuel demand. "A new strategy needs to be formed. whether it is a cut in production or something else, but it will not be an increase in production", he said.

The group, including Russian Federation and Saudi Arabia, warned that crude supply would outstrip demand next year.

Brent futures for January settlement fell 6 cents to close at US$70.12 on the London-based ICE Futures Europe exchange. West Texas Intermediate futures also tumbled, by about 5 percent.

"One thing that is abundantly clear, OPEC is in for a shale shocker as USA crude production increased to a record 11.6 million barrels per day and will cross the 12 million threshold next year", Oanda's head of trading for the Asia Pacific, Stephen Innes, told Reuters.

"We were in the meeting in Jeddah, when we read the tweet", OPEC Secretary General Mohammad Barkindo said earlier this year. "They seem to be sitting squarely on the fence about pulling the barrels back".

An oilfield development in Saudi Arabia's vast al-Rub al-Khali desert. Iraq has boosted production to a record and its more fragile economy may make it loathe to reverse course.

Falih said they would then decide whether to adjust production and by how much.

Meanwhile, BP chief executive Bob Dudley told The National the announcement by Saudi Arabia to cut production "will firm the price in 2019".

"The US had contributed to volumes and there was an "inventory build-up" which needed adjustment", Mr Falih said. "If that means trimming supplies by a million (bpd), we will".

A gallon of regular gasoline in the USA on average now sells for $2.69, down from $2.90 a month ago, according to AAA.

Since reaching a 52-week high at the beginning of October, the crude oil price has fallen 18% through Monday morning, dragging the SPDR S&P Oil & Gas ETF (XOP) down more than 17% over the same period. "We have to wait and see how the market is unfolding".

"In general, in November the output is expected to be slightly less than the October level", Novak was quoted as saying.

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