Crude oil prices fall on possible Saudi Arabia production increase

19 September 2012 15:48  [Source: ICIS news]

LONDON (ICIS)--Crude oil futures extended losses on Wednesday after Saudi Arabia announced it would take action to curb oil price inflation.

By 14:08 GMT, the front-month November ICE Brent contract had touched an intraday low of $108.58/bbl, a loss of $3.45/bbl compared with Tuesday’s settlement. The contract then recuperated some of its losses to trade around $109.00/bbl.

At the same time, the front-month October NYMEX WTI contract was trading around $92.90/bbl, having touched an intraday low of $92.46/bbl, a loss of $2.83/bbl compared with Tuesday’s close.

Saudi Arabia said on Wednesday that it would make attempts to keep oil prices steady and prevent them from rising further. In the past, Saudi Arabia has increased oil production to exert downward pressure on prices to prevent oil demand destruction.

In related news, OPEC’s secretary general said the markets are well supplied and there is no shortage of oil anywhere in the world.

By: Kawai Wong
+44 20 8652 3214

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