Oil is sliding again following some fleeting gains, while Venezuela is predicting that crude prices (WTI) may fall to the mid 20s next year if OPEC fails to stem supply. Oil was up briefly following a statement from Saudi Arabia that the country was ready to take action to stabilize tumbling prices. But concern over global oil supply re-emerged on Monday in the run up to OPEC’s December 4th meeting, as analysts pointed out that the statement does not mark a shift in Saudi policy, or a commitment to slash output. Oil prices have tumbled roughly 45 percent in the last year as OPEC members and oil producers outside the group have failed to agree on supply cuts. The situation has not been helped by the strong dollar, which recorded 7 month highs at the start of the week. Venezuela is now urging OPEC to agree on an ‘equilibrium price’ of $88 a barrel to cover the costs of new investment. Saudi Arabia meanwhile continues to hold out in terms of market share, taking back its position from Russia in October as the largest supplier of crude oil to China, according to Beijing’s latest customs administration report.
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