Brent prices go down this holiday season for Thanksgiving.
Crude which has been sliding downwards has touched a new low on Friday showing more weakness for the oil market.
On Friday, Brent was almost 1 percent down as it left levels of $61.58 per barrel. Brent, which saw a high of $86 per barrel in October has slowly taken a southern journey to touch very poor levels in November.
The OPEC meeting to be held in Vienna on December 6th is the only hope for the oil market. Saudi Arabia has already announced that it would be cutting down on production to stop the glut in the oil production.
Once a consensus is reached, more countries may come forward towards cutting down on oil production. Saudi Arabia had announced on Thursday that a joint output cut at the OPEC meeting will be finalized. This will reduce oil supply by 1.4 million barrels per day.
The US has been showing record production of oil to be on par with Russia, the world’s largest oil producer so far. In November, the oil market has dropped almost 20 percent. It has been moving down continuously for seven weeks.
The Iran sanctions imposed by President Trump have also led to a weakening in the oil prices. The economic slowdown that has set in with the trade war is also an important factor for low demand.
Analysts continue to point to “oversupply in the market” as the reason for the downward spiral in the oil prices.
Crude and WTI prices have been going downwards. The market slump which took place during the years 2014 to 2016 and the global meltdown that happened in 2008 are some of the black days for the oil market.
With the oil market turning volatile, concerns of another slowdown are seen. Oil prices have witnessed the worst one-month decline, the biggest since 2014.