Brent crude oil hits new four-year low
Brent oil slumped to a new four-year low on expectations that OPEC are unlikely to cut production levels to counter the global supply glut, traders said.
On Wednesday, Saudi Arabia’s Petroleum and Mineral Resources Minister rejected talk that the country was leading a price war in global crude markets as prices tumble. “Talk of a price war is a sign of misunderstanding — deliberate or otherwise — and has no basis in reality,” Minister Ali Al-Naimi told a conference in Acapulco, according to the text of his speech. Since mid-June, Brent oil prices have also fallen by more than 30 percent in value amid concerns over abundant supplies. In addition, the oil market was also pushed lower on Thursday by the stronger dollar and worries over slowing demand. “Brent front month futures breached below $80 per barrel ... suggesting further downside momentum in the oil market,” added Sucden analyst Myrto Sokou. “Brent futures have retreated more than $35 in nearly five months ... as bearish oil fundamentals and a sharp slowdown in the oil demand from the US and Asia weighed on market sentiment.” Last week Riyadh sent global oil prices plunging when it cut its prices for the US market while raising them for Asia, the country’s major outlet. Analysts guessed that the country wanted to strengthen its market share in the United States against a flood of domestic oil from shale deposits.
- Arab News
- Published on:
- November 13, 2014
- Source url: