Oil prices fell by more than 1 per cent on Tuesday, with Brent crude sliding below $70 and WTI below $60 per barrel, after US President Donald Trump put pressure on OPEC not to cut supply to prop up the market.
Falih said the U.S. sanctions had removed less oil from the market than expected because of the waivers. Major oil producers said Sunday, Nov. 12, 2018, that crude supply next year would outstrip demand, calling for new strategies that might include cutting production.
"The initial headlines coming out of.Abu Dhabi that Saudi Arabia has committed itself to lower production output should be enough to prevent the value of oil from falling any further, at least for now", said Jameel Ahmad, global head of currency strategy & market research at FXTM.
"OPEC+ nations sent a clear signal they are concerned rising supply and weaker demand may keep pushing oil prices down", said Jason Bordoff, director of the Center on Global Energy Policy at Columbia University in NY.
In a series of tweets, Trump blamed a stock market sell-off on the Democratic victory while pressing the Saudis and OPEC to keep oil production at current levels.
The fall also came as the USA -dollar hovered near 16-month highs on Tuesday, making oil imports more expensive for any country using other currencies at home.
Worldwide benchmark Brent crude oil futures were at $69.39 per barrel, down 73 cents, or 1 percent, from their last close. The cut represents a reduction in global oil supply of about 0.5 percent.
While no decision to reduce supply was taken over the weekend, this month's report will add to the chorus of views within the group, pushing for new cuts. We also have 82 per cent of our exports made up of manufactured goods, so how can you say we're dependent upon oil revenue?
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Saudi Arabia is the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC).
Members of Opec, the cartel that pumps about a third of the world's crude, agreed that supply would need to fall by about a million barrels per day next year.
Oil's slide accelerated on Tuesday, with USA futures dropping to lows not seen in 11 months due to ongoing worries about weakening global demand, oversupply and sell offs across other asset classes, including equities.
Global benchmark Brent crude oil futures were at $69.17 per barrel, down 95 cents, or 1.4 percent, from their last close.
As it cuts December shipments, the world's biggest crude exporter may struggle to convince others to follow. Trump said in a Twitter post on Monday.
He added: "If such a decision is necessary for the market and all the countries are in agreement, I think that Russian Federation will undoubtedly play a part in this".
He said market sentiment had shifted from fears of shortages to worries about oversupply.
Trump in recent weeks demanded the oil cartel increase production to drive down US gasoline prices.