Record production from Saudi Arabia puts pressure on oil
Investment bank Jefferies says that the negative price reaction is as severe as the 2008 financial crisis
London — Oil prices fell on Tuesday, depressed by record Saudi Arabian production even as the kingdom tried to persuade other exporters to agree output cuts ahead of an Opec meeting next week. Brent crude oil was down 70c a barrel at $59.78 by 8.38am GMT, still above a 13-month low of $58.41 reached on Friday. US light crude was 75c lower at $50.88. Saudi Arabia raised oil production to a record high in November, an industry source said on Monday, pumping 11.1-million to 11.3-million barrels a day during the month. Oil prices have lost almost a third of their value since early October, weighed down by an emerging supply overhang and widespread financial market weakness. “The oil price correction has become a rout of historic proportions, US investment bank Jefferies said in a note on Tuesday. “The negative price reaction is as severe as the 2008 financial crisis and the aftermath of the November 2015 Opec meeting, when the group decided not to act in the face of a very over-supplied...
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