The price fell by 5% in one day.
The price of oil futures of Brent crude for delivery in January 2019 on the ICE exchange on Friday, 23 November, dropped below $60 per barrel. The fall day was about 5% (minus almost $3), according to the auction, RBC reports.
According to 16:45 Minsk time, for barrel gave $59,64. The last time Brent was trading at below $60 at the end of October 2017.
Falls in price and WTI. A barrel of oil this brand are also in the area of 16.45 Minsk time was trading at $50,95 lost for days more than 6% (minus approximately us $3.5).
Bloomberg notes that oil is cheaper on the background of statements by Saudi Arabia. Riyadh reported that the volume of production in the Kingdom reached vozmozhnyh record levels. According to the Minister of energy of Saudi Arabia Khalid al-falikha, the Kingdom produces more than 10.7 million barrels. per day, which is an indication that Riyadh brought the total production to record levels.
Saudi Arabia also said that in December is going to somewhat reduce the production, however, if OPEC+ will not be able to reach a new deal on limiting oil production, analysts expect the oversaturation of the market in 2019. In parallel, oil prices have an impact growing for nine consecutive weeks, the oil reserves in the U.S., the Agency said.
“Prices are down because trump continues to put pressure on OPEC and Saudi Arabia, so prices were low and also because of rising us inventories,” said in an interview with Bloomberg, the representative of the NH Investment & Securities Co. in Seoul, Hong Sunky. “Potential change of the situation is that OPEC+ decide to do with the point of view of production,” he added.
Submitted OPEC (the cartel of oil exporters plus Russia, Mexico and Kazakhstan) will hold a regular meeting on December 6 where he will discuss the quota of oil production.