Oil eyes 2015 lows after OPEC lifts output ceiling

Omkar Godbole FXStreet Contributor

FXStreet (Mumbai) - Oil prices fell sharply on Monday and are closing-in on 2015 lows after the OPEC lifted its daily output quota on Friday.

The OPEC’s move indicated that the group is likely to continue its strategy of defending the market so long as the non-OPEC members maintain their production levels.

At the time of writing, the WTI Jan futures were down 2.9% at USD 38.83/barrel. Brent futures were down 1.9% at USD 42.18/barrel.

As per the Reuters reports, Saudi Aramco Chief Executive Amin Nasser said at a conference in Doha on Monday he hoped to see oil prices adjust at the beginning of next year as unconventional oil supplies start to decline. The comments again underscored the fact that the kingdom is relying on market adjustment to support prices rather than cut production.

Meanwhile, the data on Friday showed U.S. rig count numbers were down by 31 month-on-month to 760 rigs. However, the data got overshadowed by the OPEC decision.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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