NEW YORK, Oct 13 (Reuters) - Brent oil prices fell on Monday, tumbling more than $2 a barrel intraday to their lowest since 2010, after key Middle East producers signaled they would keep output high even if that meant lower prices.
Brent oil prices have tanked by nearly 25 percent since June as ample supply coincided with weak demand, raising the possibility that the Organization of the Petroleum Exporting Countries (OPEC) could cut output.
But Saudi Arabia has privately told oil market participants it can accept oil prices between $80 and $90 a barrel, sources briefed by OPEC's biggest producer told Reuters.
Kuwait's oil minister said OPEC was unlikely to cut production to support prices. OPEC ministers will meet to discuss output policy Nov. 27.
"It suggests there's some nervousness in the market that Saudis are seeking to bring pressure on the shale producers in the U.S.," said Gene McGillian, an analyst at Tradition Energy.
"The market is in search of a bottom and we're in the process of finding it, we just have to see what OPEC does and where the economy goes," McGillian said.
Brent November crude fell $1.32 to settle at $88.89 a barrel, having slumped to $87.74, the lowest front-month price since December 2010. The intraday low was a contract low ahead of its expiration on Thursday.
View Full Article
Copyright 2017 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles
From the Career Center
Jobs that may interest you