Investing.com - Crude oil futures tumbled on Monday, as indications Saudi Arabia is comfortable with lower oil prices weighed.
On the New York Mercantile Exchange, crude oil for delivery in November hit a session low of $84.09 a barrel, before recovering to last trade at $84.59 during U.S. morning hours, down $1.23, or 1.43%.
There will be no floor trading on the Nymex on Monday because of the Columbus Day holiday in the U.S. All electronic transactions will be booked with Tuesday's trades for settlement.
On Friday, Nymex oil futures fell to a daily low of $83.59 a barrel, a level not seen since July 2012.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for December delivery slumped $1.64, or 1.81%, to hit $88.95 a barrel.
London-traded Brent futures hit $87.10 a barrel earlier, the weakest level since December 2010.
Oil prices sold off after Saudi Arabia privately told oil market participants that it is ready to accept oil prices below $90 per barrel, and perhaps down to $80, for an extended period.
The move may be aimed at slowing the expansion of rival producers in an effort to retain its market share across Asia and Europe.
Saudi Arabia is the largest exporter among OPEC members and produces approximately 10 million barrels of oil a day.
In addition, Kuwait's oil minister Ali al-Omair said OPEC is unlikely to cut output to support prices. Al-Omair was quoted as saying that a drop to the $76 to $77 a barrel range might be the level that would end the recent slide in prices.
London-traded Brent prices have fallen nearly 23% since June, when it climbed near $116 following violence in the Middle East and North Africa, while WTI futures are down almost 21% from a recent peak of $107.50 in June.
OPEC oil ministers are scheduled to meet in Vienna on November 27 to consider whether to adjust their production target of 30 million barrels per day for early 2015.
Global supplies have far outpaced demand in recent months, sparking speculation among traders about whether OPEC would lower production to keep prices high.
A report last week showed OPEC oil output hit a two-year high of 31 million barrels per day in September, led by higher output from Iraq and Libya.
Some market analysts believe that only a cut in output by the oil cartel will halt the decline in prices.
Investor sentiment was also hit amid concerns over the global economic outlook.
The International Monetary Fund cut its global economic growth forecasts for the third time this year last week and warned that the recovery remains weak and uneven.
The organization is now forecasting global economic growth of 3.3% this year, down from 3.4% in July and expects growth of 3.8% in 2015, compared to an earlier prediction of 4.0%.