West Texas Intermediate crude declined amid concern that the global market will remain oversupplied followed OPEC’s decision to keep output unchanged. Brent traded near the lowest since 2010.
Saudi Arabia’s state-run oil company will offer the deepest discounts for its benchmark crude to Asian buyers in at least 14 years. The biggest member of the Organization of Petroleum Exporting Countries has no price target for oil, according to a person familiar with its oil policy.
“Sentiment is certainly more bearish,” said Michael Lynch, president of Strategic Energy and Economic Research in Winchester, Massachusetts. “We’re going to drift lower until there’s a serious improvement in the economy, a disruption in supply or an OPEC member actually does something instead of saying that someone else should take action.”
Both benchmarks fell 18 percent last month as OPEC maintained its output target, letting prices fall to a level that may slow U.S. production growth. Kuwait’s oil minister said the group is acting to preserve market share amid a global supply glut, after resisting calls from members including Venezuela to cut production at a Nov. 27 meeting in Vienna.
WTI for January delivery dropped 36 cents, or 0.5 percent, to $67.02 a barrel at 10:10 a.m. on the New York Mercantile Exchange. Volume was about 12 percent below the 100-day average for the time of day. Prices have declined 32 percent this year.