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Page added on November 23, 2018
Oil prices hit a 2018 low
Global oil supply has surged this year, with the top-three producers — the United States, Russia and Saudi Arabia — pumping more than a third of global consumption.
- Saudi Arabia is pushing OPEC to cut oil supply by as much as 1.4 million bpd to prevent a supply glut.
- Shanghai stocks fell the most in five weeks on Friday, by 2.5 percent, amid worries over China’s economic growth and the U.S.-Sino trade war.
Oil prices fell to their lowest in a year on Friday, on course for their biggest one-month decline since late 2014, even as oil producers consider cutting production to try to stem a rising global surplus.
Oil supply, led by the United States, is growing more quickly than demand and to ward off a build-up of unused fuel such as the one that emerged in 2015, the Organization of the Petroleum Exporting Countries is expected to start withholding output after a meeting planned for Dec. 6.
But this has done little so far to prop up the price. The value of a barrel of oil has dropped by around 20 percent so far in November, in a seven-week streak of losses.
Benchmark Brent crude oil futures fell $2.31 a barrel, or 3.7 percent, to a low of $60.29, its lowest since November 2017. By 1050 GMT, Brent was trading around $60.75, down $1.85.
U.S. West Texas Intermediate (WTI) crude futures lost $2.90, or 5.3 percent, at one point to touch a low of $51.73 a barrel.
“The question is now how much longer bears are able to keep firing. Are they going to run out of ammunition shortly or they have ample supply of bullets?” PVM Oil Associates strategist Tamas Varga said.
“It is reasonable to compare the current economic and supply/demand picture with the one four years ago. After all, it was in November and December 2014 when oil prices fell more or less to the same level where they are now,” he said.
Volatility has spiked to its highest since late 2016, as investors have rushed to buy protection against further steep price declines.
Volatility, a measure of investor demand for a particular option, has jumped above 60 percent for very bearish near-term sell options, double what it was two weeks ago.
Global oil supply has surged this year. The International Energy Agency expects non-OPEC output alone to rise by 2.3 million bpd this year, up from its forecast six months ago of 1.8 million bpd..
Demand next year meanwhile is expected to grow at a rate of 1.3 million bpd, compared with a forecast of 1.5 million bpd six months ago.
Adjusting to lower demand, top crude exporter Saudi Arabia said on Thursday that it may reduce supply as it pushes OPEC to agree to a joint output cut of 1.4 million bpd.
104 Comments on "Oil prices hit a 2018 low"
joe on Sun, 25th Nov 2018 10:40 am
It was always a massive mistake to have a PM who campaigned remain in charge of Brexit, at least Cameron had the courage to resign. May should have excused herself and this more than anything is the cause of whatever is to follow no matter what happens. Boris Johnson as PM would have given at least a clear cut choice, one which a real opposition could have formed up against. Now May will be chasing labour votes, hoping and prayING that she can scrape through. Either way the DUP will not be backing her government much longer and hopefully an new election will lead to a bigger majority for either Labour or Tory so that the DUP can be told to f@#k off.
I AM THE MOB on Sun, 25th Nov 2018 10:53 am
Losers are more likely to believe in conspiracy theories, study finds
https://www.psypost.org/2017/09/losers-likely-believe-conspiracy-theories-study-finds-49694
Poor Clogg, just another deluded old man who believes in make believe..No evidence to support any of his conspiracies. And he wont ask an expert about any of it..
Davy on Sun, 25th Nov 2018 11:05 am
Wow, dirty, that was mentally expansive. It took a lot of brain power to make that. Lol. You irrelevant fool.
Cloggie on Sun, 25th Nov 2018 11:43 am
Losers are more likely to believe in conspiracy theories, study finds
You have repeatedly gloated that 9/11 was an inside job/false flag and that the US got away with it. Are we smart or what?!
According to your own definition you are a “loser”.
In your case I am willing to support your assertion.