Oil stays below $59 on Opec cut doubts

Oil deepened losses below $59 a barrel today as traders waited for evidence that other Opec members would follow Saudi Arabia…

Oil deepened losses below $59 a barrel today as traders waited for evidence that other Opec members would follow Saudi Arabia's lead in cutting output.

US light, sweet crude dipped 12 cents to $58.69 a barrel earlier, extending a 52-cent fall yesterday. London Brent fell 26 cents to $58.95 a barrel.

Prices hit a 2006 low of $56.55 a barrel last week and stand 25 per cent below a record-high traded in July.

Top global exporter Saudi Arabia told its customers at the weekend that it would give them less crude in November, making good on its part in an Opec deal last week to cut production by 1.2 million barrels per day (bpd) to try to stem falling prices.

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The kingdom told Asian refiners that it would cut their sales by up to 8 per cent versus October's levels and told oil majors that it would deepen earlier curbs by another 5 per cent, but most others members have yet to show evidence of reducing output.

With oil prices still high by historical measures, analysts have questioned whether the full cuts Opec agreed to will be implemented, and oil traders appear to be waiting for the proof.