West TX Oil Below $59.50 as Producers Tussle for Market Share

Oil extended losses below $60 a barrel amid speculation that OPEC’s biggest members will defend market share against U.S. shale producers. Brent also slid after closing at the lowest price since July 2009.

West Texas Intermediate futures fell as much as 1.9 percent in New York and are down 10 percent this week. Iraq, the second-largest producer in the Organization of Petroleum Exporting Countries, said its decision to widen a discount for January sales to Asia isn’t proof of a price war. Crude will drop further next week, a Bloomberg News survey of analysts and traders shows.

Oil is headed for the 10th weekly decline since October after OPEC decided against reducing its output quota, even as the highest U.S. production in more than three decades exacerbates a global glut. Saudi Arabia, Iraq and Kuwait, the group’s three biggest members, this month widened discounts for shipments to Asia, bolstering speculation that they’re fighting for market share.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.