United States oil continues to fall. When will the turnaround come?

Will Gas Prices Go Up? Saudi Arabia to Cut Production

Oil's slide accelerated on Tuesday (Nov 13), with USA futures suffering their steepest one-day loss in more than three years due to ongoing worries about weakening global demand and oversupply.

Oil prices have plunged more than $20 a barrel since the start of October, when Brent crude rose to almost $87 a barrel and U.S. benchmark West Texas Intermediate (WTI) traded around $77.

Brent crude, the European benchmark, was trading just above $65 a barrel while USA crude futures stood just below $56 - its lowest mark for 12 months.

Trump appeared to criticize the announcement in a Monday tweet: "Hopefully, Saudi Arabia and OPEC [Organization of the Petroleum Exporting Countries] will not be cutting oil production".

The comments from the minister, Khalid al-Falih, show the balancing act the US allies face in dealing with President Donald Trump's actions related to the oil industry.

Yesterday's falls mean that the Brent benchmark has now lost about a fifth of its value since hitting a four-year high in early... However, I am expected in the December OPEC meeting to be the catalyst to give some relief to the falling Oil market as they announce production cuts.

Leaves global oil demand growth forecast unchanged for 2018 and 2019 at 1.3 mln bpd and 1.4 mln bpd, respectively.

Anxious by a drop in oil prices and rising supplies, OPEC is talking again of reducing production just months after increasing it.

Opec now expects world demand to grow 1.29m barrels a day next year, about 70,000 barrels a day lower than last month's forecast.

The Indian market too welcomed the fall in worldwide oil prices and opened higher today.

Brent was trading at $65.54 a barrel, following its largest one-day loss since July 2018.

Oil markets are being pressured from two sides: a surge in supply from OPEC, Russia, the Unites States and other producers; and increasing concerns about a global economic slowdown.

The U.S. dollar also put pressure on oil, hovering near 16-month highs and so making oil more expensive for importers using other currencies.

Oil prices, which spiked in October in the run-up to the reimposition of U.S. sanctions on Iran's oil industry on November 5, fell after the USA granted waivers to eight countries importing Iranian crude for a 180-day period.

Total US oil supply growing by 2.1 mln bpd this year and 1.3 mln bpd during 2019. Yawger noted that the potential pullback in Saudi output has in part already been made up by the sharp bump in US production, which reached 11.6 million bpd in the most recent week, a new record. While the Organization of Petroleum Exporting Countries has indicated it looks to return to production cuts, Russian Federation has not joined the verbal interventions, adopting a "wait and see" approach at an Abu-Dhabi meeting with its allies this week.

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