Oil tumbles 4% to multi-month lows as Saudi Arabia promises increased output

Oil futures fell over 4% in American trade, with US crude plumbing August 21 lows, while Brent hit September 7 lows, as the dollar index tapered off August 20 highs. 

That comes after minor US industrial data, while Saudi Arabia oil minister Khalid Al Falih pledged to plug any potential supply shortage in the market from US sanctions on Iran, with eyes on producing as much as possible as a current mantra for OPEC and its oil allies. 

As of 04:55 GMT, US crude futures due in December fell 4.41% to $66.30 a barrel, while Brent December futures slid 4.25% to $76.44 a barrel, as the dollar index shed 0.12% to 95.89 away from three-month highs. 

Earlier US data showed the Richmond manufacturing index tumbled to 15 from 29 in September, missing estimates of 25. 

Saudi oil minister Khalid Al Falih said his country hopes OPEC and oil allies would sign a new deal in December to extend the current cooperation framework to guarantee a balanced oil market. 

Otherwise, Russian energy minister Alexander Novak said Russia has no plans to increase output to 12 million bpd by the end of the year despite supply shortages concerns. 

US Oil Rig Count 

Baker Hughes, a US services company, recently reported an increase of 4 in the oil rig count to 873 rigs, second such weekly increase in a row. 

US output fell 300 thousand bpd last week to 10.9 million bpd due to temporary shutdowns of oil rigs in response to Hurricane Michael.