Crude oil futures began the trading week lower on Monday as Saudi Arabia, the largest oil exporter from the Organization of the Petroleum Exporting Countries (OPEC), rose to a eight-year high.
Prices for the West Texas Intermediate crude for December delivery dropped 46 cents to $93.38 a barrel on the New York Mercantile Exchange and stood at $93.52 at 3:45pm in Singapore. While the European benchmark crude Brent for January settlement declined 44 cents lower to $108.06 a barrel on the London-based ICE Futures Europe exchange. Brent crude was at a premium of $13.99 to WTI for the same month.
The North American crude oil marked its sixth consecutive weekly loss last week, the longest losing streak since 1998.
Saudi Arabia, the largest oil exporter among OPEC, produced 10.12 million barrels a day in October, up from 7.84 million barrels a day recorded in September.
The country’s production increased by 300,000 barrels a day in September, compared to any other month since November 2005, data from the Joint Organizations Data Initiative (JODI) confirmed.
Meanwhile in the US, crude stockpiles advanced to 388.1 million barrels in seven days ended November 8 while output rose to its highest since January 1989, the Energy Information Administration confirmed last week.
Talks with Iran over its nuclear program will resume on Wednesday, which the western powers are accusing the Persian Gulf nation of covertly seeking atomic-weapons capability.
In Libya, the deputy intelligence chief was kidnapped on Sunday as the turmoil in the country continues to weigh on oil production. Libya is now producing only 10% of its capacity.
According to data from the US Commodity Futures Trading Commission, money managers reduced net-long positions on WTI by 4.3% in the week ended November 12.
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