Oil Falls More Than $3 on Increased Saudi Arabian Production

Nov. 27 (Bloomberg) — Crude oil fell more than $3 a barrel in New York after Saudi Arabia’s oil minister, Ali al-Naimi, said the country has increased production to the highest this year.

Saudi Arabia, the biggest producer in the Organization of Petroleum Exporting Countries, is pumping 9 million barrels a day, al-Naimi said in Singapore today. Prices also fell on speculation that slower economic growth in the U.S. and Europe will cut fuel consumption.



“The combination of a slowing economy and signs of increased OPEC output is putting pressure on prices,” said Peter Beutel, president of energy consultant Cameron Hanover Inc. in New Canaan, Connecticut. “A lot of traders thought we would breach $100 on Wednesday, Friday and again yesterday and it didn’t happen. We are now seeing a lot of them exit the market.”

Crude oil for January delivery fell $3.17, or 3.2 percent, to $94.53 a barrel at 9:14 a.m. on the New York Mercantile Exchange. Futures reached $99.29 on Nov. 21, the highest intraday price since trading began in 1983. Prices are up 58 percent from a year ago.

Brent crude oil for January settlement declined $2.56, or 2.7 percent, to $92.76 a barrel on the London-based ICE Futures Europe exchange. Brent reached $96.65 a barrel yesterday, the highest since trading began in 1988.

Bloomberg