The price of Brent crude oil slumped below $88 a barrel today, a four-year low, due to signs of rising output from major producers in the Middle East.
Reuters reported that the price of Brent crude touched its lowest in about four years to $87.74 and grew slightly to approximately $88.10 a barrel while US crude was down $1.60 at $84.22.
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Sources briefed by the Organization of the Petroleum Exporting Countries’ (OPEC) largest producer told the news agency that Saudi Arabia has privately indicated that oil prices between $80 and $90 a barrel were acceptable.
Kuwait Oil Minister Ali al-Omair said on Sunday that OPEC was not likely to cut output in order to push prices up.
OPEC is scheduled to discuss output at its meeting in November, due to be held in Vienna, Austria.
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Several analysts anticipate the group to reduce oil supply before its meeting.
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By GlobalDataMeanwhile, China increased its crude oil imports by 9.5% in September, when compared with August, which supported prices in a limited way.
According to Reuters, several chart analysts forecast that the prices of oil may decrease by another $10, or even more.
A monthly OPEC report, released on Friday, revealed that Saudi Arabia increased its production to 9.704 million barrels per day (bpd) in September, when compared with the 9.597 million bpd produced in August.
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