Oil prices slip below $60 mark amid record Saudi output

Oil prices fell on Tuesday amid media reports of record high Saudi crude production in November, even as the Kingdom pushes for output cuts ahead of an OPEC meeting in Austria next week.

Global benchmark Brent crude was last down 1.2 percent at $59.75 per barrel (bbl), while West Texas Intermediate was 1.5 percent lower at $50.86/bbl.

Saudi Arabia increased oil production to a record high in November, pumping between 11.1 and 11.3 million barrels per day (bpd), agencies reported.

Oil prices have fallen by almost a third of their value since early October, dragged down by oversupply and weakness in financial markets.

“The 3 percent recovery in oil prices yesterday seemed to be short-lived with both major benchmarks declining slightly today,” said Hussein Sayed, chief market strategist at FXTM.

“It will be difficult to know where prices will be headed next unless we know the outcome of the G20 summit and OPEC’s annual meeting on Dec. 6. Finding a new normal is likely to be a difficult task in the weeks to come,” he added.

Leaders of the G20 countries, which constitute the world’s largest economies, will meet on Nov. 30 and Dec. 1. Among the main concerns expected to be addressed is the global trade war brewing between the US and China.

Shortly after, OPEC will host its annual meeting at its headquarters in Vienna on Dec. 6, where the oil producer group will discuss output policy together with non-member allies, including Russia.