Large oil producers gathered on Sunday in Abu Dhabi to consider turning to production cuts after a sharp fall in crude oil prices revived the fears of a collapse in 2014.
Oil prices held one-fifth of their values one month after reaching a four-year high in early October, with the combination of factors focusing on high demand and sluggish demand fears.
Brent crude fell to $ 70 a month for the first time since April. In New York, West Texas Intermediate (WTI) fell below 60 months to nine-month low.
While the United States increased shale oil production, Saudi Arabia, Russia and others increased the supply of crude oil with the slowdown in demand.
The slide indicates that the US has a softer effect than expected sanctions on Iranian oil exports.
"The prices came from major producers, such as Saudi Arabia, Russia and the United States, which, in spite of a steady increase in raw material supply, went beyond compensating for barrel losses in Iran," Forex.com analyst Fawad Razaqzada told AFP.
"Because weekend Iranian sanctions are not as severe as initially feared, weekend weekend officials from manufacturers other than OPEC and OPEC can discuss the need to bring the compatibility rate back to 100 percent, or to move towards another 2014-style decline in prices," he said.
The energy ministers of the top producers will participate in the Joint Ministerial Committee meeting, which controls production levels, except for Russia and Saudi Arabia, OPEC and OPEC.
The world's second and third crude producers – after overcoming US oil through schist oil – Russia and Saudi Arabia are the core of the alliance of producer nations that succeeded in solidifying oil prices after the collapse in 2014.
Thanks to large production cuts starting at the beginning of 2017, oil prices have fallen below $ 85 a barrel in October and increased their revenues strongly, resulting in oil drums worth $ 85. they managed to pull down from.
However, the producer countries have released hundreds of thousands of extra barrels in June, loosening their production cuts in June after a tight market and higher prices.
According to Energy Minister Khaled al-Falih, Saudi Arabia rose to about 10.7 million bpd in May from around 9.9 million barrels in May.
Kuwait, Iraq, Russia and the United Arab Emirates also increased their output.
Cailin Birch, an analyst at the Economist Intelligence Unit, said that a slowing oil demand has started to emerge in China, the world's largest importer of crude oil.
"The recent drop in oil prices reflects a combination of a number of factors," Birch told AFP. Said.
Kuwait, Venezuela and the UAE host country's oil ministers will also participate in the meeting, not a decision, but most likely to send a signal.
The technical committee, JMMC, is expected to make significant recommendations on production cuts to a major ministerial meeting in Vienna next month for non-OPEC and non-OPEC producers.
Germany's second-largest lender, Commerzbank, said Friday oil producers should act to prevent free fall in prices.
"Oil prices are threatening further slippage if they don't give any signal of intent to reverse the final increase in production," the bank said in a note.