…Conventional oil producers in OPEC can no longer dictate prices, United Arab Emirates Energy Minister Suhail Al-Mazrouei said in an interview on Nov. 26. Newcomers to the market who have the highest costs and created the glut should be the ones to determine the price, he said.
“Given the supply capacity now outside OPEC, cutting production at these levels wasn’t in the best interest of the Saudis or OPEC,” Ric Spooner, a chief strategist at CMC Markets in Sydney, said by phone. “In the medium term, somewhere in the $60s is likely to see a base, but you couldn’t discount the possibility of a short-term spike down to even lower prices.”
U.S. production expanded to 9.08 million barrels a day through Nov. 21, the highest level in weekly records that started in January 1983, according to the Energy Information Administration. Crude inventories rose to 383 million, said the Energy Department’s statistical arm.