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The drop in oil prices are seen as the U.S. crude inventories have increased and reached their highest level since December 2017, raising concerns over an emerging global glut. In order to restrict further decline, the producer group, OPEC, is expected to cut the supply.
Energy Information Administration (EIA) in their weekly report stated that U.S. commercial crude oil inventories rose by 4.9 million barrels to 446.91 million barrels last week, making it reach the highest level since December last year.
U.S. West Texas Intermediate (WTI) crude futures stood at $53.38 per barrel at 0141 GMT, 25 cents, or 0.5 per cent below their last settlement whereas the Front-month Brent crude oil futures were at $63.28 per barrel, down 20 cents, or 0.3 per cent, from their last close.
The EIA added that U.S. crude oil production remained at a record 11.7 million barrels per day (bpd). This made the Organization of the Petroleum Exporting Countries (OPEC) nervous about the future glut and is reportedly considering supply cuts when it next meets on Dec. 6
Trump, on the other hand, praised Saudi Arabia over recent oil prices and called for prices to go even lower. Trump tweeted, “Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy!… Thank you to Saudi Arabia, but let’s go lower!”
