Crude oil prices fell on Friday after the Organization of Petroleum Exporting Countries reported another jump in production in October.
OPEC pumped 33.64 million barrels per day, up from 240,000 in September, according to its monthly report. This was the highest in at least eight years, according to Reuters.
This increase throws into doubt the chances that the oil cartel will implement limits to its production levels when it meets November 30. Reduced output could lift oil prices and the economies of OPEC members dependent on revenue from exports.
West Texas Intermediate crude oil futures for December delivery fell by as much as 2% to $43.75 per barrel, close to the lowest level in nearly two months.
Iran continued to be a big source of overall OPEC output. It said it produced 3.92 million barrels per day in October, although secondary sources pegged that lower at 3.69 million, according to Reuters. Nigerian production increased the most month-on-month, by 223,000 barrels per day; earlier this year, militant attacks in the Niger Delta region hampered production.
Like other risk assets including stocks, futures tanked on Tuesday in the initial knee-jerk reaction to President-elect Donald Trump’s victory in the election. They rebounded on Wednesday, but are still down about 2% for the week after two straight days of declines.