Higher crude oil output in the united states pull down global oil prices
Kuwait's ruler warned Tuesday that lower oil price was damaging the economy of the oil-rich Gulf state, even as oil moved further lower after a bearish price forecast for the next two years owing to a global supply glut
London/Kuwait City: Kuwait’s ruler warned Tuesday that lower oil price was damaging the economy of the oil-rich Gulf state, even as oil moved further lower after a bearish price forecast for the next two years owing to a global supply glut.US benchmark West Texas Intermediate (WTI) for delivery in December fell 24 cents to $80.76 a barrel. Brent North Sea crude for December slid 47 cents to stand at $85.36 a barrel in London afternoon deals.
“We continue to see oil prices drift lower, and with nothing significant happening, the Goldman report is still on investors’ minds,” David Lennox, resource analyst at Fat Prophets, said. Goldman said on Monday it expected WTI to sink to $70 a barrel by the second quarter of next year before rising back to $80 in 2016. That was $15 a barrel lower than its previous forecast. The Wall Street giant’s outlook on Brent is for it to fall to as low as $80 by the second quarter, staying weak through 2015 before returning to $90 level in 2016.
On Tuesday, Kuwait’s ruler called on the government and parliament to “safeguard our oil and fiscal wealth” and urged lawmakers to “stop squandering resources” and to diversify revenues.
“You have the responsibility to stop squandering resources, rationalise spending and direct subsidies to reach those who need it... without impacting the standard of living,” Sheikh Sabah al-Ahmad Al-Sabah said in a speech to open the new parliamentary term.
He also called for stepping up plans to reduce Kuwait’s dependence on oil revenues by diversifying the economy. Oil prices have lost more than a quarter of their value since June, hitting the state coffers of oil-dependent countries like Kuwait.The US department of energy reported a 7.1-million barrel surge in crude reserves in the week to October 17.
( Source : agencies )
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