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Oil heads for four-year low

Saudi Arabia has privately told oil market participants it can accept oil prices between $80 and $90 a barrel, sources briefed by Opec’s biggest producer have told Reuters.

London: Brent crude oil fell below $88 a barrel on Monday, its lowest in almost four years, after key Middle East producers signalled they would keep output high even if that meant lower prices.

Saudi Arabia has privately told oil market participants it can accept oil prices between $80 and $90 a barrel, sources briefed by Opec’s biggest producer have told Reuters.

Kuwait’s oil minister said on Sunday Opec was unlikely to cut production to support prices.

“In light of these comments, one should not expect any Opec output cuts before the November 27 meeting,” said Bjarne Schieldrop, chief commodity analyst at SEB in Oslo.

The Organisation of the Petroleum Exporting countries is due to discuss output at next month’s meeting, and some analysts had expected the group to reduce oil supply before then.

Brent crude touched its lowest since December 2010 at $87.74 in early trade on Monday, but recovered slightly to around $88.60 a barrel by 1350GMT, down $1.61 on the day.

US crude was down 80 cents at $85.02.