Brent crude falls to lowest levels in over a year as supply swells.
Oil prices slid more than 6 per cent to below $60 a barrel ;on Friday to the weakest levels in more than a year, dragging the US stock market back into correction territory, as traders questioned Saudi Arabia’s ability to curtail supply while under pressure from the White House to keep fuel prices low.
President Donald Trump has been browbeating his Gulf ally for weeks to prevent a jump in petrol prices. This he week praised Saudi Arabia’s leadership for its role in the 30 per cent slide in oil prices over the past two months, in which Brent crude dropped from $86 a barrel to a low of $58.41 on Friday.
Saudi leaders have been discussing the need to cut output, as a price collapse threatens its budget. But traders said Mr Trump’s support for Crown Prince Mohammed bin Salman in the wake of the killing of journalist Jamal Khashoggi would complicate decision-making in Riyadh.
“President Trump has provided strong political support to Saudi Arabia, but against that, he wants lower prices,” said Olivier Jakob, an analyst at Petromatrix in Switzerland.