PEAK OIL – On Tuesday, oil prices inched down in Asia. This is amid the wait-and-see attitude of Russia towards the potential decision of OPEC to trim crude output.
As of 10:59 PM ET (02:59 GMT), the January delivery of the Crude Oil WTI Futures declined 0.14% to $57.12 a barrel. This was based on the New York Mercantile Exchange. Meanwhile, the January delivery of Brent Oil Futures fell 0.3% to $66.59 per barrel. This was according to London’s Intercontinental Exchange.
On Monday, reports cited some statement from Russia’s energy minister Alexander Novak.
“We need to see how the situation develops in November and early December to better understand both the current conditions and the winter outlook,” Novak said.
Moreover, he added that there should be a “balanced decision” and there are no criteria for it so far.
On December 7, the country will meet other OPEC+ oil producers in Vienna. This summit aims to reach an output decision for the following six months.
OPEC’s de-facto leader Saudi Arabia is urging that should be cut of output by 1.4 million barrels per day (bpd). This is primarily to avoid oversupply.
Meanwhile, OPEC+ is an informal name given to the super cartel of 24 oil producers.
On Tuesday, the Central Intelligence Agency (CIA) in the U.S is likely to reveal a report to President Donald Trump. This report is about the role of Saudi Arabia in the murder of journalist Jamal Khashoggi in October. Trump disapproved the suggestion of Saudi to trim output. Further, he wanted to extend the decline in oil prices.
Oil declined on the increasing supply concerns which inflict negative effect on the economic outlook.
Peak Oil: Oil fell amid supply concerns negative effect on an economic outlook
On Tuesday, Oil markets declined amid the worsening economic outlook. Further, this is along with the increase in US production that exceeded the expected OPEC’s supply cuts.
As of 0313 GMT, the Brent crude oil futures recorded $66.55 a barrel. This was lower 24 cents or 0.4% from their previous settlement.
The US West Texas Intermediate (WTI) crude futures were at $57.07 per barrel. This was lower 13 cents or 0.2 from their last close.
Meanwhile, oil prices are near a quarter below their latest October peaks. This was overburdened due to increasing supply from the United States
For 2018, the US crude oil production increased close to 25% to a record 11.7 million barrels per day (bpd). Further, this comes in the middle of a widespread market expectation of an economic slowdown. On Tuesday, the Asian stock markets declined that added sharp losses on Wall Street the previous day.
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