Crude drops to $60.8 as OPEC oil output sinks to an eight-year low

Brent crude on Monday dropped in price again, shedding $1.09 to close at $60.82 per barrel.

Also on Monday, reports by Reuters said that the oil output of the Organisation of Petroleum Exporting Countries (OPEC) fell to an eight-year low in September.

The sink in oil output of OPEC, which was the lowest since 2011, came after attacks on Saudi Arabia oil plants cut production.

Crude oil in OPEC basket, it was also learnt fell to $62.31, dropping by $0.04 when compared to what it traded for the preceding day.

The drop in OPEC output is said to have deepened the impact of a supply pact and the United States sanctions on Iran and Venezuela.

The 14-member OPEC, in September pumped 28.9 million barrels per day, according to Reuters survey. The figure was down by 750,000bpd from August’s revised figure and the lowest monthly total since 2011.

The September 14 attacks on two Saudi oil plants shut down 5.7 million bpd of production and sent crude prices up 20 per cent to $72 a barrel on September 16.

The price had since fallen to $61, near levels before the Saudi attack, pressured by a rapid production restart and concern about slowing demand.