Oil Prices Weaken; Saudi Arabia Vows to Balance Global Glut

November 23, 2018

Investing.com – Oil prices remained weak on Friday morning trading in Asia amidst market concerns over a global oil glut coupled with softer.

Crude Oil WTI Futures for January delivery traded on the New York Mercantile Exchange fell 1.45% to $53.94 a barrel by 10:59PM ET (02:59 GMT). Brent Oil Futures for January delivery also slipped 0.1% to $62.5 per barrel on London’s Intercontinental Exchange.

Saudi Arabia has pledged to cool market anxiety and is pushing oil output cuts within the Organization of the Petroleum Exporting Countries (OPEC) and the wider grouping known as OPEC+, which includes 24 oil producers. Saudi Arabia’s Energy Minister Khalid al-Falih said on Thursday that in view of the soft demand for January oil, the kingdom will respond accordingly, according to Reuters.

Part of the problem is that the U.S. has given out multiple waivers to sanctions it imposed on Iran. Those waivers mean that plenty of Iranian oil will continue to flow into the market.

“So January demand for Saudi Arabia would be lower… We will not sell oil that customers don’t need,” Falih told reporters.