MercoPress. South Atlantic News Agency
Crude price falls to a three year low, created by shale boom and Libya restart
”Talk of a price war is a sign of misunderstanding, deliberate or otherwise, and has no basis in reality,'' Saudi Oil Minister Ali al-Naimi 
With oil prices down 30% since June, OPEC delegates are starting to suggest they may push for an informal output cut of around 500,000 barrels per day West Texas Intermediate, WTI crude closed at a three-year low on Wednesday with prices under pressure from the growing oil glut created by the U.S. shale boom and the restart of Libya's largest operational oilfield.
With oil prices down 30% since June, delegates in the Organization of the Petroleum Exporting Countries (OPEC) are starting to suggest they may push for an informal output cut of around 500,000 barrels per day (bpd) when the producer group meets in Vienna on Nov. 27.
But they have warned an agreement within OPEC will not be easy, and many oil traders and analysts doubt members will take a decisive stance as they compete to hold onto market share.
Brent for December delivery fell 1.50 to 80.18 per barrel. It dipped below 80 earlier for the first time since 2010. U.S. crude settled 76 cents lower at 77.18 per barrel, its lowest close since October 2011.
Saudi Arabia, the world's largest exporter, said it was doing its best with other producers to ensure price stability.
“Talk of a price war is a sign of misunderstanding, deliberate or otherwise, and has no basis in reality,'' Saudi Oil Minister Ali al-Naimi said during a visit to Mexico on Wednesday.
The country also said its oil production was little changed in October in OPEC's monthly report on Wednesday, even as the group forecast demand for its oil next year will drop to 29.2 million bpd, almost 1 million less than it is currently producing.
Commerzbank analyst Carsten Fritsch said an unofficial 500,000bpd cut by OPEC would be ”by no means enough to restore any sort of balance“ to the oil market.
”Evidently the market is keen to test out OPEC's pain threshold,” Fritsch said.
Adding to supply, Libya restarted production at its large El Sharara oilfield, a spokesman for National Oil Corp (NOC) said, though exports remained blocked from the 120,000-bpd Hariga port by protesters involved in a wage dispute. The smaller El Feel field is also shut.
The oil minister of Iran, one of the OPEC members hardest hit by lower prices, on Tuesday met Kuwait's emir as part of a tour aimed at winning support to stabilize oil markets. Kuwait's oil minister has said a cut is unlikely.
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Read all commentsNo matter what Opec does it won't matter in the long run. They've lost their largest client and their economies depend on high priced oil.
Nov 13th, 2014 - 01:38 pm 0I said a couple years ago USA fracking will change world dynamics.
It will be interesting to watch this play out.
Eventually the mideast will go back to being what they've always have been barbaric tribes roaming around hacking each other heads off while their cities crumble around them.
I hope I am still alive to see it.
If that heavy crude price keeps dropping Venezuela will be in deeper trouble that it already is.
Nov 13th, 2014 - 02:19 pm 0However, the pain will be worth it short-term if Maduro's regime collapses with it.
http://www.ft.com/fastft/236022/oil-slides-saudi-sits-still-venezuela-panics
Nov 13th, 2014 - 05:37 pm 0What I am loving is the effect on Venezuela. They are so low in the shit the only thing left now is the big flush.
There is nothing left at these prices for foreign explorers to putter around at the dead cow. AT the worst case scenario these prices are projected throughout 2015.....and perhaps lower. The only dead cow left to talk about next was just released from the hospital.
While it may not concern many here, it does me. They are starting to pull visiting tourists to the side at customs and interrogate them about their visit. Where are they staying, checking into their money situation, hotels etc.....The Special Visitors Treatment.
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