Oil prices fell to their lowest level during a volatile session by signs of oversupply amid bleak economic prospects. The drop came despite market expectations that the Organization of the Petroleum Exporting Countries (OPEC) will begin curbing production after a meeting scheduled for Dec. 6.
Overall, the supply of crude in global markets has increased this year. The three largest producers, the United States, Russia and Saudi Arabia, pumped more than a third of global consumption of about 100 million barrels a day.
To cope with falling demand, Saudi Arabia, the world's top crude exporter, said on Thursday it could cut supplies. Saudi Arabia is pressing OPEC to cut crude supplies by as much as 1.4 million bpd to prevent a supply crunch. The organization formally meets on December 6 to discuss production policy.
For the natural gas:
Natural gas prices fell by more than 5% during the week, as Qatar announced its intention to withdraw from OPEC to focus on the natural gas industry.
Although Qatar's role in OPEC's oil market is not large, it is the world's largest exporter of liquefied natural gas.
Qatar's Energy Minister Saad al-Kaabi said his country plans to exit OPEC to concentrate on natural gas through the development of the natural gas industry and the implementation of recently announced plans to increase the country's production of liquefied natural gas from 77 to 110 million tons annually.
In the other side, Qatar's withdrawal from the Organization of Petroleum Exporting Countries, Effective 1 January 2019, is a wise decision," said former Qatari Foreign Minister Hamad bin Jassim bin Jabr Al-Thani. Adding "This organization is useless and does not add anything to us. Harm our national interest. "
But the Kuwaiti politician and former National Assembly member Nasser al-Duweila say that Qatar's withdrawal from OPEC is a strong indicator of the despair of Qatar from any system subject to interests contrary to its national interest.