Oil Oversupply Causes Prices to Dip to 2018 Lows – 22 November, 2018

A global oil oversupply and bleak economic outlook caused prices to dip to 2018 lows, backed with little support at the possibility of OPEC cutting supplies by 2019. West Texas Intermediate crude dropped by 2 percent to $53.35 per barrel, just 5 cents shy of the October 2017 lows reached earlier in the week. Brent crude oil futures dipped to $61.52 per barrel, their lowest since December 2017, but managed to recover slightly to $62.10 per barrel, still 0.8 percent and 50 cents below their last close.  Newly imposed U.S. sanctions on Iran reduced its exports, but surging supplies from America are depressing prices in the U.S. The U.S., Saudi Arabia, and Russia, the top three producers, account for over a third of global consumption at roughly 100 million barrels per day. OPEC will meet on December 6th to discuss it’s supply policy.