WTI & Brent take a dive as Saudi Arabia threaten to boost oil production


It has been reported that Saudi Arabia are threatening to boost oil production unilaterally if some OPEC nations continue to defy the group’s output curbs, cartel officials say. (WSJ).

Leading into the OPEC meeting things were on the up as both API and DoE's produced a draw this week. There was also talk of not only extending the production cuts but making them deeper too. 

Prior to this news, there were also reports that Saudi Arabia were looking at radical options, including a deeper collective oil cut, as Aramco readies for its IPO.

This is not the only time it has been reported that Saudi Arabia are getting tired that other OPEC countries are not pulling their weight. Last week there was talk that the New Saudi Energy minister was not impressed by the efforts of the other nations to comply. The article said, "Saudi Arabia will no longer compensate for other members non-compliance".

Now for the rest of the session oil traders will be looking to work out if this news trumps the rumours of more cuts and the extension. So far in an initial reaction, WTI fell from around USD 58.59 to a low of USD 57.91 per barrel.

WTI

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

GBP/USD stays below 1.3350 on poor UK PMIs

GBP/USD hits fresh session lows of 1.3335 following an unexpected drop in the UK's Preliminary Manufacturing and Service PMI reports. However, the downside appears capped amid growing Brexit optimism. 

GBP/USD News

EUR/USD keeps range around 1.1130 on downbeat PMIs

EUR/USD trims gains to trade near 1.1130 region after the sentiment around the euro was dented by the disappointing German and Eurozone Preliminary Manufacturing PMIs. Trade concerns also keep the gains limited. 

EUR/USD News

UK Elections and US-China trade: Removing Risk Factors

Following the euphoria over the decisive UK election result and the US-China "Phase 1" trade deal markets look primed to end the year on a positive footing. Two of the major risk factors threatening to detail market sentiment into year end have at least been lifted.

Read more

Gold consolidates in a range, flat-lined around $1475 level

Gold extended its sideways consolidative price action through the early European session on Monday and remained confined in a narrow trading band near the $1475 region.

Gold News

USD/JPY clings to modest gains, just below mid-109.00s

The USD/JPY pair edged higher on the first day of a new trading week, albeit lacked any strong follow-through and remained well within the previous session's trading range.

USD/JPY News

Forex MAJORS

Cryptocurrencies

Signatures