Oil price drops amid fears over demand

Will Gas Prices Go Up? Saudi Arabia to Cut Production

Inventories in industrialized nations have expanded for four straight months and are set to continue rising, according to the International Energy Agency.

Anxious by a drop in oil prices due to record supply from Saudi Arabia, Russia and the United States, the Organization of the Petroleum Exporting Countries is talking of a U-turn just months after increasing production.

The head of Libyan state oil firm NOC said in a statement on Thursday that it was important for OPEC and non-OPEC producers to co-operate to maintain oil market stability.

What is the outlook for oil demand and supply?

Oil prices are getting hit by both rising supply and falling demand.

"I believe a cut of 1.4 million bpd is more reasonable than above it or below it", one of the sources said.

The bench might be where Gordon Hayward belongs right now
The C's forward, accepting that, said he was open to coming off the bench and it's "whatever" to him whether he starts or not. Chicago won the first two games of the 2017 playoff series in Boston before the Celtics came back to win.

In its monthly report, the Paris-based IEA left its forecast for global demand growth for 2018 and 2019 unchanged from last month at 1.3 million barrels per day (bpd) and 1.4 million bpd, respectively, but cut its forecast for non-OECD demand growth, the engine of expansion in world oil consumption. The only question is by how much the group will be reducing. It also risks handing market share to the United States, while the sources said Russian Federation might need persuading to back such a move. However, President Trump is pressuring Opec not to cut supply in order to prop up prices. On Monday, it was the Saudis that made headlines with the promised 500,000-bpd cut, while reductions from the rest of the group were unclear. OPEC meets on December 6 to set policy for 2019.

But OPEC officials hope Moscow will come round eventually. In reality, they may have discussed this option last weekend along with other options at the meeting in Abu Dhabi, but it does not seem to be a coincidence that news of this larger plan surfaced a day after one of the sharpest declines in oil prices in a long time.

Saudi Energy Minister Khalid al-Falih said on Monday OPEC agreed there was a need to cut oil supply next year by around one million barrels per day from October levels to prevent oversupply. "We have to look into long-term development, into how the price will be stabilized", he said on the sidelines of a conference in Singapore, according to Reuters.

The IEA too suggested that the building of inventories, which could accelerate, is not the worst thing in the world.

USA bank Morgan Stanley said on Wednesday that China's economic "conditions deteriorated materially" in the third quarter, while analysts at Capital Economics said China's "near-term economic outlook still remains downbeat".

He said the increase in shortage and price of crude oil is expected to occur in the event that the sanction continued, adding that the issue is going to impact tremendously on the earnings of Nigeria, which relies on revenues from oil to sustain itself.

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