Brent Oil Nears 4-Year Low as Concerns Over OPEC Output Continue

Brent crude oil traded near a four-year low as concerns abound that OPEC’s production cut won’t affect global supplies.

According to Bloomberg:

The Organization of Petroleum Exporting Countries’ production dropped by 226,400 barrels a day last month to 30.253 million, the largest decrease since March, led by a drop in output from Saudi Arabia, the group said in its monthly report. Test production started at Libya’s largest oil field after halting last week, according to the National Oil Corp.

Ole Hansen, head of commodity strategy at Saxo Bank A/S, said:

A 70,000-barrel reduction from Saudi Arabia is clearly not helping the current supply glut, which by OPEC’s own admission is expected to rise next year. This report will only add to the current negative momentum in the market.

Click here to read the full article.