The oil price has slumped to its lowest point this year, as concerns mount about a glut of crude supply and fears that economic headwinds could lessen demand.

Brent crude fell as low as $59.26 a barrel on Friday, a level last seen in October 2017. Three supermarkets said on Friday they would cut petrol prices, as Asda cut its national price cap by 1p per litre for petrol and 2p per litre for diesel, with Morrisons and Sainsbury’s following suit.

After reaching a high of more than $86 a barrel in early October, which prompted warnings that it would climb further to $100, the oil price has since plunged by more than 30%.

But some industry observers said they expected it to recover next year if Opec took action to avoid an oversupply of crude.


The price is expected to average $75.50 a barrel in 2019 compared with $73.91 this year, according to a survey of 11 oil forecasters by S&P Global Platts.

The recent fall follows US waivers for eight countries to import oil despite sanctions on Iran, high output and markets worried about a drop in demand. Jefferies bank said: “The market is currently oversupplie

Earlier this week, Donald Trump thanked Saudi Arabia, the de facto leader of Opec, for pumping more and bringing down the price, but the US president said he wanted to see it lower still.


Donald J. Trump
✔
@realDonaldTrump
Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower!

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The oil cartel is due to meet in Vienna in a fortnight to discuss what major producers should do next.

Khalid al-Falih, the Saudi energy minister, has previously indicated a significant cut in output is needed. This week, he said the kingdom’s current high exports were likely to be lower in December and January. “We will not sell oil that customers don’t need,” he said.

If Opec agrees production curbs on 6 December, this would imply a rebound in prices next year.

But experts said the pressure from Trump and his close links to the Saudi crown prince, Mohammed bin Salman, meant it would be hard for the country to agree such a move.

The analysts Petromatrix said: “Our view remains that it will be politically difficult for Saudi Arabia to organise a coordinated Opec supply cut.”

Analysts believe the oil price will continue to be volatile in the coming months, with UBS bank saying this was “inevitable” and a price of $60 a barrel was plausible.

TheGreenLand:
All the evil politicians that stole all the money of this nation when the oil prices was so high will never know peace all the rest of their lives......

jamace:
The evil tongue of APC is seriously affecting the price. Even when oil price was almost $80 per barrel, APC was still crying that the oil price is low. Beware of what you say.

Oblang:


What abt those that sold far above $100. Do u know oil price was still above $70 when gej started borrowing to pay salaries and many states started having issues paying salaries...

NwaAmaikpe:





Oil is the only way out o.
Crude oil was made for Nigeria and Nigeria for crude oil.

That's why we've dedicated funds that would have been used to develop the agricultural and manufacturing sector into the exploration of Crude oil in the Northern and Chad Basins.

So that even if it dries up all over the world, it can't in Nigeria.
Sai Baba!!!

jamace:
The evil tongue of APC is seriously affecting the price. Even when oil price was almost $80 per barrel, APC was still crying that the oil price is low. Beware of what you say.

Avedonn:
Saudi Arabia intentionally crashed the world oil price by increasing their output just to
Please the US and European power after the backlash of Jamal Khashoggi's Murder.

They are just looking for a way to ease the pressure on them and the only weapon they've is the crude oil. Which is why Trump couldn't do or say anything meaningful about the journalist murder.

Saudi alone can influence the world oil price anytime they want. I even heard Trump thanking the Saudi crown Prince on Friday about the crashed crude oil price.

theoldpretender:


I don't think APC is that powerful....

The thing is, oil is being discovered in more places....and at the same time,new technologies mean that oil can be extracted more efficently and from hard toreach places.

(Fun fact...in my parents house is a textbook Iused to use that said we would run out of oil by the early 2000. Did not happen though).

Only way for oilprcies toshoot up is for Trump to suddenly sanction the Saudis re Kashoggi. But that aint going to happen...and the Saudis are going to scratch Trump's back by keeping oil low....OPEC or no OPEC.

jamace:
APC knows the problems of Nigeria before coming to power. So, APC should work quietly to achieve results instead of blaming every other administrations.

If I may ask, how many campaign promises has APC fulfilled?

gurunlocker:
You've given a failed government something to wail about and blame for their failure.

Somebody should show Buhari this

@realDonaldTrump
Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower!

Buhari is the first president in the world to diversify the economy from crude oil dependent into more crude oil searching in another part of the country

GavelSlam:


They should also show him the protest in Paris over the 25% increase in the price of diesel.

gurunlocker:


Lol.... Diesel is made from crude oil, I don't know what you are saying.

But if you are conversant with what's going on in the country, you will know the price of Diesel also increases in Nigeria past week.

Oblang:


If not APC, it shouldn't be PDP...

GavelSlam:


I am not arguing about price increase in Nigeria.

I'm only pointing out that price of petroleum products can be seen in developed countries as well.