Oil prices fall amid further fears of oversupply

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"A decision will have to be made against a background of strong US shale oil supply growth, and for now, weaker expectations on global oil demand growth".

"I explained to (Suarez) the results of the OPEC+ agreement on the stability of oil markets, which serves the interests of producers, consumers and investors and supports the global economy", he wrote. “Even if production is cut, concerns about slowing demand could still weigh on prices.”.

On Thursday, the price of NY crude ducked below $50 per barrel for the first time in nearly 14 months.

Friday's price fall has increased the stress over OPEC in front of an awaited meeting between the OPEC and its associates to be held on December 6 in Vienna, where they are expecting to declare the decrease in the oil output for the year 2019.

Despite US sanction over Iranian oil, the OPEC output remains plentiful and the oil price have plunged 30% since early October and US oil reserve has reached a record high.

Production increased 1.1 percent from August and 21 percent a year ago, led by Texas, North Dakota and Alaska, countered by a drop in Gulf of Mexico output.

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Global benchmark January Brent crude LCOF9, -1.39% which expired at the end of the session, lost 80 cents, or 1.3%, to $58.71 a barrel.

An agreement to cut oil production by some 1.8 million barrels per day - struck in late 2016 by OPEC and other world producers led by Russian Federation - is paying dividends, Al-Falih tweeted.

Novak also said he was set to meet his Saudi counterpart during the G20 Summit, with 2019 oil output cut a key focus. CME Group's OPEC Watch Tool pegs the probability of a “small production cut” at 52%, with expectations for “little or no change” at almost 48%.

Offering a hint on US production activity, Baker Hughes BHGE, -1.25% on Friday reported that the number of active domestic rigs drilling for oil rose by 2 to 887. The barrel of the January WTI was trading at $51,55 (+0,19%).

The oil reserves in the US increased by 3.6 million barrels in the week to 23 November to 450,49 million barrels, according to the worldwide energy Agency. The contract has climbed about 41% this month—the largest monthly rise in about nine years.

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