SHAFAQNA (Shia International News Association)- Crude oil prices are facing a downward trend and global demand forecasts are being revised as the world’s biggest oil producer, Saudi Arabia, pumps more crude oil into already saturated markets.
On Monday, North Sea Brent crude oil prices dropped below USD 86 a barrel, pushing the global oil benchmark back toward last week’s four-year low, which was below USD 83.
US benchmark West Texas Intermediate also dipped to levels last seen in 2012, and hovered below USD 83 a barrel.
Oil prices have been down more than 25 percent since June amid concerns over booming supply, sluggish demand, and a gloomy economic outlook from Europe to China.
“There’s still a sense that right now things are not really great in the global economy and there are no signs that oil producers are looking to cut back on production any time soon,” said Phil Flynn, an analyst at Chicago-based Price Futures Group.
Organization of the Petroleum Exporting Countries (OPEC) is expected to meet in November 27.
Experts say Saudi Arabia is happy with the current trend, and can tolerate prices even at around USD 80.
“The Saudis seem willing to tolerate prices around $80 so I would not be surprised if it continues to go lower,” said James Williams, energy economist at WTRG Economics in the United States.
Saudi Arabia has signaled that it will keep production high in spite of the drop in global crude oil prices.