Brent Crude crossed below $65 for the first time since 2009 this morning and WTI began to slide as inventories showed a bigger-than-expected build. But it was Saudi Arabia's oil minister al-Naimi who sparked the latest dump:
- *NAIMI SAYS `WHY SHOULD I CUT PRODUCTION'?
And with that WTI plunged to a $60 handle on heavy volume...
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For now Russia and Brazil have stabilized their FX somewhat but Mexico is beginning to suffer now among the oil producers...
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Crude inventories rose 1.45 million barrels in the week ended Dec. 5, the EIA, the Energy Department’s statistical arm, said.
Analysts surveyed by Bloomberg expected a drop of 2.7 million.
The EIA yesterday reduced its price forecasts for next year while also downgrading its production outlook for a second month.
The Organization of Petroleum Exporting Countries reduced its demand estimate by about 300,000 barrels a day to 28.92 million next year, according to the group’s monthly oil market report.
That’s below the 28.93 million required in 2009, and the lowest since the 27.05 million a day OPEC supplied in 2003, the group’s data show.
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It seems once again that credit was right.
Charts: Bloomberg
