Brent and West Texas Intermediate crudes are poised for the lowest close in more than five years after Saudi Arabia offered its oil customers in Asia the biggest discount on record, signaling it’s defending market share.
OPEC's decision to cede no ground to rival producers underscored the price war in the crude market and the challenge to U.S. shale drillers. The 12-nation group abandoned its role as a swing producer, ignoring the steepest slump in oil prices since the global recession to keep its output target unchanged.
OPEC is all in and will continue to flood the globe with oil in an effort to bury the U.S. shale crude oil producer. OPEC will continue to produce over 30 million barrels a day adding to the globes 2 million barrel a day of overproduction.
West Texas Intermediate fell from the lowest price in more than four years as Saudi Arabia’s oil minister said the price will stabilize by itself, while the United Arab Emirates said OPEC will do what it takes to balance the market.