Oil tumbles on oversupply concerns, sinking world stocks

Brent crude, the global benchmark, is down 6 percent.

According to the official, the DoJ "would frown upon" the "type of conduct" enabling OPEC to slap production quotas on crude oil, with quotas blamed for raising the price of gas for U.S. consumers. The value of a barrel of oil has dropped by around 20 percent so far in November, in a seven-week streak of losses.

Brent crude, the leading global benchmark price, was trading 5 per cent lower at just over $59 a barrel.

Oil prices slumped more than 6 percent to the lowest in more than a year on Friday amid fears of a supply glut even as major producers consider cutting output.

"I have to say that the speed in which the oil market has declined has surprised me even as OPEC and non-OPEC members discuss a production cut", said Andrew Lipow, president of Lipow Oil Associates.

Crude collapsed into a bear market this month after the US allowed some nations to continue buying Iranian crude.

For 2018, Brent is expected to average $73.91, down from the October survey forecast of $74.40, and compared to average Brent Crude price of $73.26 so far this year. "The question is what OPEC will do in December, will they cut, and if so, by how much?" he said. The International Energy Agency expects non-OPEC output alone to rise by 2.3 million bpd this year, up from its forecast six months ago of 1.8 million bpd.

Oil prices plunged on Friday on concerns about oversupply, sending world stock markets lower as lagging energy shares weighed down Wall Street.

Iran's exports have dropped by several hundred thousand barrels per day (bpd) this month, a leading tanker-tracking company said on Thursday, suggesting USA sanctions that kicked in this month have scared off many buyers. "In that scenario, Brent prices likely recover back into the $70s", Morgan Stanley commodities strategists Martijn Rats and Amy Sergeant wrote in a note to clients.

Although the Organization of the Petroleum Exporting Countries is expected to curb output, rising US oil supply has fueled persistent concerns about a global surplus.

The oil-rich kingdom's promise of more supply cuts also puts the OPEC and non-OPEC alliance on a potential collision course with the United States.

On Wednesday, the US president publicly thanked Riyadh for helping to keep a lid on oil prices - but again called on the de-facto leader of OPEC to push prices even lower over the coming months.

A day after standing by Crown Prince Mohammed bin Salman in the face of allegations that he had ordered the killing of dissident journalist Jamal Khashoggi, Trump on Wednesday publicly thanked Riyadh for helping to keep a lid on oil prices.

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