Brent Crude slid down to a 4-year low after Iraq went with the bandwagon and followed Iran and Saudi Arabia to give huge discounts on oil produce.
Iraq, considered as Organization of the Petroleum Exporting Countries' second largest oil producer, has offered Asia its lowest price since January 2009, and offer its biggest discount in nearly six years coming November, according to Iraq's State Oil Marketing Co. (SOMO)
"OPEC is not ready to act and that's making people continue to sell. Until we see some comments out of OPEC suggesting they are going to stabilize the price, I Think the market will probably keep falling," explained Michael Lynch, president of Strategic Energy & Economic Research in Winchester.
Brent Crude went down $1.32 (1.5 percent) and closed at $88.89 per barrel in November, the lowest since 2010. Cost of oil products also slid 23 percent and from the year's highest close of $115.06 last June 19.
Meanwhile, several oil companies from Iraq have already cut prices, according to SOMO.
Iraq's Basrah Light crude settles at $3.15 below the Oman and Dubai's average offering in Asia, SOMO stated.
Also, state-run National Iranian Oil Co. gave buyers in Asia a low price.
Prior to that, Saudi Arabia, the world's largest oil exporter have given an all-time-low price for Arab Light crude since December 2008.
Saudi Arabia always leads other oil producers in the Middle East like Kuwait, Iran and Iraq whether to lower or raise export prices.
According to Carsten Fritsch, an analyst at Commerzbank AG in Frankurt, "OPEC is still giving no indication that it might take steps to shore up prices.
"OPEC countries appear to be more interested in defending their market shares at present than stabilizing prices," Fritsch added.
Because of the huge market imbalance the price cuts have cost, OPEC countries will reportedly have to make 500,000 barrels a day in the next two years to balance it out, according to Morgan Stanley, an analyst at Adam Longson stated
