FXStreet (Mumbai) – Oil prices extended losses in a delayed reaction to the Saudi Aramco’s comments, which showed the kingdom may keep production higher in 2016.

Brent Crude Jan futures now trade 1.45% or 69 cents lower at USD 45.48/barrel. WTI oil Jan futures, which were trading dead flat in Europe, are now down 26 cents or 0.6% at USD 42.80/barrel.

Saudi Aramco, the Kingdom’s largest oil producer said, said the producer will not cut production in 2016, but will meet customer’s demands.

The comments come a week ahead of the OPEC meting on Dec 4, where the markets expect Saudi to announce a shift in its strategy in order to support prices. However, Saudi Aramco’s comments contradict market expectations, due to which the prices could have extended losses.

Oil prices extended losses in a delayed reaction to the Saudi Aramco’s comments, which showed the kingdom may keep production higher in 2016.

(Market News Provided by FXstreet)

By FXOpen