The oil price fell in Friday's troubled trade to its lowest level since the end of 2017, burdened by a looming crude oil surplus and a weakening economic outlook.
To counteract the bulging supply, the Organization of the Petroleum Exporting Countries (OPEC) is expected to start after a resource withdrawal meeting scheduled for 6 December.
The international benchmark index of Brent crude oil futures has fallen to $ 61.52 per barrel since December 2017, before recovering to $ 62.13 at 0741 GMT. That was 47 cents or 0.8 percent below their last close.
US. West Texas Intermediate (WTI) crude oil futures plunged 2.3 percent to $ 53.38 a barrel. Prices have already fallen to $ 52.82, just 5 cents above the $ 52.77, which was the lowest since October 201
The volatility of Brent and WTI prices rose in November to a level previously unavailable from the market downturn of 2014-2016 and before that the 2008-2009 financial crisis.
The divergence between US and international crude oil comes about as North American supply clogs the system and depresses prices, while global markets are somewhat narrower, in part due to reduced exports from Iran through newly imposed US sanctions ,
Overall, however, global oil supply has increased sharply this year, with the top 3 producers – the United States, Russia, and Saudi Arabia – pumping more than a third of global consumption, or about 100 million barrels per day ( bpd).
"The market is currently oversupplied," said US investment bank Jefferies on Friday, adding, "An oversupplied market is having a difficult time fixing a (price) floor."
High production comes as demand expectations weaken due to global economic slowdown.
Shanghai shares fell 2.5 percent on Friday within five weeks. Faced with concerns about China's economic growth and doubts that President Xi Jinping and US President Donald Trump could reach a de-escalation in the Sino-US trade war when they meet next week.
Oil prices have fallen about 30 percent since their last highs in early October, as global production started to outpace consumption in the fourth quarter of this year. As a result, an underfunding of the quarter ended in the first quarter ended in 2017, according to Refinitiv Eikon.
Saudi Arabia crude oil exporter said Thursday that the crude oil exporter could reduce demand.
"We will not sell oil that customers do not need," Saudi Energy Minister Khalid al-Falih told reporters.
Saudi Arabia is driving OPEC to reduce its oil supply by up to 1.4 million barrels a day to prevent oversupply.
The group officially meets on December 6 to discuss their delivery policy.
US. Bank Morgan Stanley said it was "far more likely that OPEC will reach an agreement to balance the market in 2019" than not, adding that this would support oil prices "at least in the short $ 50 years ".