Expectations of growing U.S. crude supplies sent world oil prices sliding to a new four-year low and are turning up the heat on OPEC members to cut production when they meet later this month.
OPEC convenes in Vienna, Austria, on Nov. 27, and the market is highly focused on whether members of the Organization of the Petroleum Exporting Countries will get over their differences and cut production. Saudi Arabia, the biggest producer, has indicated it does not want to go it alone with a production cut, and it has been adjusting its official selling price to maintain market share, particularly in Asia.
"Now Iraq's saying they don't want to cut either. The market is in the process of forcing them to cut. The market is going to keep grinding lower and lower into that OPEC meeting to see if they have a response or not," said John Kilduff of Again Capital.