Edition: United Kingdom  
One News Page
“Probably the fastest-access news portal in the world”
> >

Oil prices fall as Opec production cut possibility slips away

City A.M. Tuesday, 29 November 2016
Oil markets recorded heavy falls on Tuesday as a long-mooted supply cut by Opec looks increasingly unlikely.

Prices of West Texas Intermediate (WTI), the North American benchmark, fell as low as $45.63 per barrel at the time of writing – more than 2.8 per cent in the day. Meanwhile Brent crude, the North Sea benchmark, had fallen by similar amounts, recording a low of $46.79 per barrel.

Iran and Iraq are holding out against conditions desired by Saudi Arabia’s representatives, according to reports by Reuters. News that Russia, not an Opec member, will probably not attend the meeting have further dented hopes.

Markets are reacting to reports that production cut, provisionally agreed at a meeting in Algeria in September, may be under severe threat. Opec had announced a limit of between 32.5m and 33.0m barrels per day, to be confirmed at tomorrow’s meeting.

*Read more*: Banks and oil stocks drag down FTSE in morning trading

WTI prices rose steadily to above $48 per barrel until 22 November as momentum gathered behind predictions that the cut would be agreed. Since then, however, political obstacles have become clearer.Rumours of an Opec cut have been followed by sharp falls

Opec (the Organisation of the Petroleum Exporting Countries) has not cut production since 2008 when oil demand plummeted. The cartel cuts production to attempt to raise oil prices for the benefit of its members.

However, recent efforts to cut production have stalled as members battle to preserve their market share.

Iran’s national oil minister Bijan Zanganeh was quoted yesterday by Shana, an Iranian news agency, as saying: “Revival of Iran’s lost share in the oil market is the national will and demand of Iranian people.”

“Considering the fact that OPEC does not have the authority to impose a production freeze or reduction, and with varying factions requesting exemptions, the odds of an output cut agreement being reached and implemented look unlikely,” said Mihir Kapadia, chief executive of Sun Global Investments.
0
shares
Share on
Facebook
Share on
Twitter
Post on 
Reddit
Share by
Email
 
Source: The Street - < > Embed
News video: Here Is Why an OPEC Production Cut Won't Mean Much for Oil Prices

Here Is Why an OPEC Production Cut Won't Mean Much for Oil Prices 01:06

Even if OPEC agrees to a production cut at next week's meeting, it won't be a seismic development for oil prices. "OPEC has been playing a big role in the price of oil over the last few months," said David Lebovitz, global markets strategist at JPMorgan Asset Management. "To us, it's much more about...

You Might Like


Recent related news

Oil Prices Stuck Ahead Of OPEC Meeting

As the OPEC meeting rapidly approaches, bullish sentiment appears to have taken a time-out with the recent suggestion that the production cut extension may not...
OilPrice.com - MarketsAlso reported by •Reuters

Falling Iraqi Oil Output Drags OPEC Production Down

All data below is based on the latest OPEC Monthly Oil Market Report. All data is through October 2017 and is in thousand barrels per day. (Click to enlarge)I...
OilPrice.com - MarketsAlso reported by •Reuters

Oil Production Cuts Taking A Toll On Russia’s Economy

The OPEC/non-OPEC production cuts hurt Russia’s economic growth in October, Economy Minister Maxim Oreshkin said on Thursday in the first negative comment...
OilPrice.com - Markets

Can OPEC Control The Oil Bulls In Vienna?

Until a month ago, oil analysts and investors thought a nine-month extension of the OPEC production cut agreement was a foregone conclusion.     But as the...
OilPrice.com - MarketsAlso reported by •Reuters

$40 WTI Is Now More Realistic Than $60

The current rise in oil prices is more of a fear trade right now, driven by fear of what is going on in the Middle East, rather than a result of growing OPEC...
OilPrice.com - Markets

OPEC Will Extend The Cut

There will be an OPEC deal extension—no matter the public tussling between opposing forces in the industry cartel—if the world’s largest oil producers are...
OilPrice.com - Markets


Other recent news in Business

BLACK FRIDAY 2017: Currys corrects prices after going overboard on dealsEUROPE's retailers chase sales boost with Black Friday offers
BLACK FRIDAY SALES bonanza set to hit a recordBREXIT lurks behind Britain’s cautious Budget
SPORTS DIRECT shareholders to vote on payment to John AshleyRanked: The 10 best CHRISTMAS adverts of 2017
ZIMBABWE still faces an economic struggleBURBERRY - from chav to chic
Corbyn’s LABOUR PARTY isn’t fit for opposition, let alone governmentWenger loses no sleep as ARSENAL top Europa group

Twitter

Environmentally friendly: One News Page is hosted on servers powered solely by renewable energy
© 2017 One News Page Ltd. All Rights Reserved.  |  About us  |  Disclaimer  |  Press Room  |  Terms & Conditions  |  Privacy Policy  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  Help  |  Contact us  |  DMCA / Content Removal
How are we doing? Send us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter   FIND us on Google+