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Brent crude oil fell below $88 a barrel on Monday, its lowest in almost four years, after key West Asian producers signalled they would keep output high even if that meant lower prices. Saudi Arabia has privately told oil market participants it can accept oil prices between $80 and $90 a barrel, sources briefed by Organisation of the Petroleum Exporting Countries (Opec's) biggest producer have told Reuters. Kuwait's oil minister said on Sunday Opec was unlikely to cut production to support prices.
"In light of these comments, one should not expect any OPEC output cuts before the November 27 meeting," said Bjarne Schieldrop, chief commodity analyst at SEB in Oslo.
Opec is due to discuss output at next month's meeting, and some analysts had expected the group to reduce oil supply before then.
Brent crude touched its lowest since December 2010 at $87.74 in early trade on Monday, but recovered slightly to around $88.60 a barrel by 1350 GMT, down $1.61 on the day. US crude was down 80 cents at $85.02. Growth in China's exports and imports trumped forecasts in September, and the world's largest energy consumer increased crude oil imports by 9.5 per cent from August, lending limited support to prices. China often increases imports to bolster its reserves when prices are low, and real demand growth is likely to be more modest.
The outlook in Europe was mixed. Equities rose on Monday, led by airlines which benefit from low fuel prices, after falling for three consecutive weeks. Rating agency Standard and Poor's lowered its outlook on France to negative from stable on Friday, after Paris indicated it would take two years longer than planned to bring its borrowing to within EU limits.
