Oil prices crash to their lowest level of 2018 despite Saudi Arabia's proposed production cut

Thomson Reuters

A oil pump is seen at sunset outside Scheibenhard

• Brent crude hits lowest price since December 2017.
• OPEC is set to meet on December 6th to discuss supply concerns.
• Weaker global growth and a supply glut depressing prices.
• Follow Brent's price throughout the day at Markets Insider.

Brent crude is staying lower for longer.

Oil markets continued to drop Friday as persistent concerns about a glut in global supply were exacerbated by weaker economic conditions.

Brent was down 1% as of 9.20 a.m. GMT (4.20 a.m. ET) having previously hit $61.58 a barrel - dropping to levels not seen since December 2017 despite news that Saudi Arabia was willing to cut production.

"We will not sell oil that customers don't need," said Saudi Energy Minister Khalid al-Falih.

Supply concerns are expected to lead to OPEC cutting production at a summit on December 6th with prices still stuck in a bearish position. Oil briefly touched $86 in early October before dropping dramatically in the past month.

Volatility is also high in energy markets with WTI and crude reaching levels not seen since the the 2014-2016 market slump and before that the financial crisis of 2008, according to Reuters.

Record production from the US and inventories their highest levels since last December have weighed on prices despite President Trump's renewed sanctions on Iran. Concerns that global economic growth may slow have also led to weakening demand.

"The market is currently oversupplied," according to a note from US investment bank Jefferies.

Get the latest Oil WTI price here.