Oil prices continue decline as OPEC proposes supply cuts

US President Donald Trump and OPEC continue to be at odds with each other with regards to future oil production policy as prices continue to tumble amid concerns that global demand is weakening.

The international oil cartel laid out an argument for cutting oil production to boost its price, in a direct contradiction to an earlier request from the POTUS urging OPEC not to cut oil supply.

On Monday, Trump tweeted: “Hopefully, Saudi Arabia and OPEC will not be cutting oil production. Oil prices should be much lower based on supply!”

However, in its monthly report OPEC lowered its world oil demand growth for 2019 due to uncertainties surrounding global economic growth.

“Although the oil market has reached a balance now, the forecasts for 2019 for non-OPEC supply growth indicate higher volumes outpacing the expansion in world oil demand, leading to widening excess supply in the market,” read the report.

“The recent downward revision to the global economic growth forecast and associated uncertainties confirm the emerging pressure on oil demand observed in recent months.”

The price of Brent crude dropped to US$65.95 on Tuesday and has been in near-constant decline since reaching a cyclical high of $86.29 at the start of October.