Oil Slumps on Iran Fear Factor, OPEC’s Weak Demand Outlook

  • Oil Slumps on Iran Fear Factor, OPEC’s Weak Demand Outlook

Oil Slumps on Iran Fear Factor, OPEC’s Weak Demand Outlook

A meeting of the Organization of the Petroleum Exporting Countries and allies led by Russian Federation in Abu Dhabi to discuss their deal curbing supply by 1.2 million barrels per day (bpd) did not tackle deepening the cut, Oman's oil minister said. Despite the OPEC-led cut, oil has tumbled from April's 2019 peak above $75, pressured by trade concerns and an economic slowdown.

Two OPEC delegates said deeper cuts could indeed be discussed on Thursday, when some OPEC+ ministers meet for a market monitoring committee in Abu Dhabi ahead of the formal OPEC+ meeting in December.

OPEC has been over-complying with cuts on average as Iran's and Venezuela's exports collapsed due to sanctions, but some countries such as Iraq and Nigeria have been producing above their quota.

Analysts said fall in crude oil futures is mostly in tune with a weak trend in domestic markets where it slipped on profit-booking by speculators. It also said OECD oil stocks remained above the 5-year average.

It now appears set to flood the oil market with even more crude, putting downward pressure on prices at a time when the market is already struggling to cope with too much supply.

The policy has given a sustained boost to United States shale and other rival supply, and the report suggests the world will need less OPEC crude next year.

Saudi Arabia's October production would be 9.890 million barrels per day, Prince Abdulaziz bin Salman said after a meeting of ministers from the Organisation of the Petroleum Exporting Countries and its allies led by Russian Federation.

"Booming shale production has allowed the U.S.to close in on, and briefly overtake, Saudi Arabia as the world's top oil exporter", the IEA said in its closely-watched monthly report on Thursday.

The IEA said that, over the final three months of the year, the U.S. As Saudi Arabia continues to curb production, the IEA said America's crude exports could rise by a further 33% from June levels to as much as 4 million barrels a day as new export infrastructure gets built in the fourth quarter of this year.

It is choosing as many as nine joint global coordinators including some Middle Eastern banks, the people said, asking not to be identified because the information is private.