KAMCO said in a report on the performance of the world oil markets in November 2018 that the sharp decline in oil prices is slowing against the backdrop of The possibility of OPEC member states and non-members to extend the agreement to reduce production in 2019.
She said that oil prices fell in one of the longest consecutive declines of losses of 20 percent until the end of last week, compared with the highest levels in early October 2018.
KAMCO attributed this decline to oil demand concerns in the short term on the back of expectations of weak global economic growth in the short term, as well as concerns about increased oil production, stock surpluses, weak emerging market currencies, and extended exemptions from Iran's announced sanctions Recently.
Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries (OPEC) may seek to extend the current production cut-off agreement until 2019.
The Kingdom suggested as an immediate solution producers need to cut oil production by 1 million barrels per day compared to In October 2018, adding that it will reduce its oil exports by 0.5 million barrels per day in December 2018, although the Saudi Energy Minister said in the Kingdom that the reduction of production came in response to the seasonal decline of demand.
According to the oil price trend report since the beginning of the year, Bloomberg has been in a state of turmoil over oil prices since the second week of October 2018 as the price of Brent crude fell by nearly 7 per cent in one day last week, the biggest daily decline in three years.
The price of OPEC crude was $ 67.0 a barrel, falling below $ 70 a barrel for the first time since mid-August 2018, and the lowest closing price in the past seven months. However, the average crude prices in October 2018 show a positive trend due to the rapid pace of gains recorded at the beginning of the month.
OPEC crude oil averaged $ 79.39 per barrel in October 2018, up 2.9 per cent, its highest level since October 2014. The average Brent crude was down slightly by 2.7 per cent to $ 81.3 per barrel, while crude oil By 7.0 percent to 78.6 US dollars a barrel, the monthly price of oil for the OPEC basket and the growth rate.
The latest data showed an increase in oil production in general, with US production hitting record levels of 11.6 million barrels per day and Russia's production of about 11.4 million bpd.
The Organization of the Petroleum Exporting Countries (OPEC) increased production by 430,000 bpd in October 2018, the highest level in 23 months of 33.33 million bpd, as supplies from Iran declined.
In early November 2008, Iran's top 8 oil importers, who account for nearly 75 per cent of its crude oil exports, received a 180-day exemption, signaling a surge in exports, halving since sanctions were announced.
In light of the fact that the world's top three oil producers have increased their production at record rates, production has been more than a decline by Iran and Venezuela.
Highlighting the increase in production, the International Energy Agency (IEA) predicted supply would exceed demand in 2019.