Crude prices dropped on Friday as the West Texas Intermediate (WTI) heads for another weekly drop amid speculation a drop in Saudi Arabia supplies is not a sign that OPEC’s largest producer is reducing its output.
Futures for the West Texas Intermediate (WTI) for December delivery fell 0.46% to $81.72 a barrel on the New York Mercantile Exchange at the time of writing.
While the European benchmark Brent crude for December settlement declined 0.40% to $86.48 a barrel on the ICE Futures Europe exchange based in London. Brent crude traded at a premium of $4.81 to WTI, compared with last week’s price of $4.10.
Saudi Arabia
Crude output from Saudi Arabia dropped to 9.36 million barrels a day (bpd) in September, down from the previous figure of 328,000 bpd in August, which excludes the amount of oil stored.
Crude prices have fallen into a bear market as the leading members of the Organization of Petroleum Exporting Countries (OPEC) urged to cut output.
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Saudi Arabia and Kuwait have said they will not cut production despite the falling-trend in oil prices. The 12-member group will be meeting in Vienna on the 27th of November.
Crude stockpiles
Crude stockpiles in the US, the world’s biggest oil consumer, rose by 7.1 million barrels to 377.7 million in the week ended October 17, according to a report from the Energy Information Administration.
Supplies from Cushing, Oklahoma, the delivery point for WTI futures expanded by 953,000 to 20.6 million during the period.
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