Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Israeli media reported explosions being heard in large areas of occupied Palestine after air raid sirens and air defenses were activated.
Araghchi: The Iranian delegation has sent written clarifications to the American side several times, and we have yet to receive any written response from the US envoy.
Araghchi: The defensive and missile capabilities of the Islamic Republic of Iran give strength and leverage to the negotiators.
Iranian Foreign Minister Abbas Araghchi: If the other parties were capable of destroying our nuclear facilities militarily, they wouldn’t have entered talks with us.
Araghchi: Talks mean that the other parties are unable to impose their will on Iran through military force.
An earthquake strikes the Turkish city of Konya, with aftershocks felt in Ankara.
Reuters, citing a senior Iranian official: Tehran would only ship its highly enriched uranium abroad if US sanctions were lifted "verifiably and effectively".
Reuters, citing a senior Iranian official: Iran has not received any fresh proposal from the United States to resolve a decades-long nuclear dispute.
Ansar Allah leader Sayyed Abdul Malik al-Houthi: The horrific scale of crimes committed by the Israeli enemy in the Gaza Strip clearly constitutes genocide.
Pezeshkian: We believe in negotiations, but not in threats and imposed dictates, and we will never back down from preserving Iran's dignity.

Oil hits 6-months low, falls below $70 as supply-demand fears settle

  • By Al Mayadeen English
  • Source: Agencies
  • 7 Dec 2023 00:06
4 Min Read

The fall of oil prices comes shortly after the OPEC+ announced production cuts fell below-feared volumes.

  • x
  • Oil prices hit six-months low, break $70 mark downwards
    A working oil pumpjack is pictured in Taft, Kern County, California on September 21, 2023 (AFP)

The oil market continued its downward spiral on Wednesday, as US crude prices hit a six-month low after plummeting below $70 per barrel.

This decline comes as traders anticipate an increase in oil supplies following the inability of the OPEC+ producer alliance to convince the market that it could significantly boost output cuts.

New York-traded West Texas Intermediate (WTI) crude for January delivery closed at $69.38 per barrel, marking a $2.94 drop, or a 4.1 percent decrease for the day. Earlier, WTI hit its lowest point in six months at $69.12 per barrel before correcting up slightly on closing.

Read more: Iran urges energy embargo, other sanctions against 'Israel'

Since mid-October, the US crude benchmark has witnessed a nearly 22 percent loss in value.

This drop initially began due to signs of weak seasonal demand and was further exacerbated by concerns that OPEC+ oil producers would not adhere to their promised production cuts for 2024.

Meanwhile, the Brent crude, represented by its most-active February contract, settled at $74.30 per barrel, down $2.90 or 3.8 percent for the day, following a six-month low at $74.13. The London-traded Brent has experienced nearly a 20 percent decline since mid-October.

The OPEC+ alliance, consisting of the 13-member OPEC led by Saudi Arabia and ten independent oil producers including Russia, has slashed production of between 4.0 and 5.0 million barrels per day since last year.

Related News

US to Ease Syria Sanctions, Offer 180-Day Waivers: Rubio

From Qatar, Trump proposes US control of Gaza as 'freedom zone'

Fawad Razaqzada, an analyst at London's City Index, commented on the situation, saying, "It also doesn’t help when you hear headlines like Saudi Arabia is lowering their prices for crude destined for the Asian market."

"The fact that the US is exporting nearly 6 million barrels of the black stuff per day also makes the job of oil producers in the OPEC+ group difficult, as they have to give up more market share as part of their agreement to withhold supplies. Some can’t afford to lose market share to the US, so they are not comfortable to cut further."

Razaqzada further noted that the global economy is facing stagnation due to long-standing high interest rates and the ongoing impact of inflation.

"The disinflationary process has been so slow," he added. "Oil prices are demand-inelastic anyway, which means the supply-side of the equation has a much larger impact."

Last week, oil prices tumbled by over 2 percent in response to the OPEC+ group's decision to implement voluntary oil production cuts for the first quarter of the upcoming year, which fell short of the expectations prevailing in the market.

Key OPEC+ members, including Saudi Arabia and Russia, who together account for over 40% of global oil production, decided to implement voluntary production cuts, nearly reaching 2 million barrels per day (bpd) for the first quarter of 2024.

However, it became apparent that at least 1.3 million bpd of these cuts were essentially an extension of the voluntary reductions that Saudi Arabia and Russia had already been implementing. Earlier discussions had suggested the possibility of additional cuts of up to 2 million bpd.

Russian President Vladimir Putin made a two-stop trip to the region on Wednesday, visiting the UAE and Saudi Arabia, on a one-day snap tour before returning to Moscow, where he will meet his Iranian counterpart on Thursday.

His schedule, which was suddenly announced on Tuesday, included meeting with his Arab counterparts to discuss a range of topics, including the energy sector, and the Israeli war on Gaza and Ukraine.

  • United States
  • OPEC
  • Russia
  • OPEC+
  • WTI
  • Brent crude oil
  • Oil prices
  • Saudi Arabia

Most Read

Trump cut off contact with Netanyahu, senior Israeli official says

Trump cut off contact with Netanyahu: Israeli media

  • US & Canada
  • 9 May 2025
A boy draped in a Palestinian flag carries a mock rocket during a weekly anti-US and anti-Israeli rally in Sanaa, Yemen, Friday, May 9, 2025 (AP)

Yemen announces hypersonic missile strike on Ben Gurion Airport

  • Politics
  • 9 May 2025
President Donald Trump, left, greets Israeli Prime Minister Benjamin Netanyahu at the White House, Monday, April 7, 2025, in Washington (AP)

US pressures 'Israel' for Gaza deal; Witkoff's Israeli rebuke leaked

  • US & Canada
  • 9 May 2025
Palestinians pray over bodies of people killed in the Israeli bombardment who were brought from the Shifa hospital before burying them in a mass grave in the town of Khan Younis, southern Gaza Strip, Wednesday, Nov. 22, 2023. (AP )

Gaza casualty figures mask a much bigger horror, new study shows

  • Politics
  • 11 May 2025

Coverage

All
Gaza prevails against genocide

Read Next

All
A Fly Dubai plane is parked on the tarmac at Ben Gurion International Airport in the Occupied Palestinian Territories, Sunday, Nov. 10, 2024 (AP)
Economy

Israeli tourism suffers $3bln loss amid 'unprecedented' crisis

Israeli Prime Minister Benjamin Netanyahu speaks during an annual ceremony in al-Quds, Occupied Palestine, April 29, 2025 (AP)
Politics

Netanyahu refuses to budge, captive talks stall: Israeli officials

Susan Sarandon joins hundreds urging BBC to release delayed Gaza film
Europe

Susan Sarandon joins call for BBC to air documentary on Gaza medics

In this photo released by the Saudi Royal Palace, Syria's interim President Ahmad al-Sharaa, left, shakes hands with President Donald Trump, centre, in Riyadh, Saudi Arabia, Wednesday, May 14, 2025 (AP)
Politics

'Israel' blindsided by Trumps' Syria sanctions lift: The Times

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS