Oil Drops From 2 1/2-Month High Amid Clouded OPEC+ Intentions


(Bloomberg) — Oil ceded some gains amid uncertainty about whether OPEC and other major producers intend to impose any new significant supply curbs.

dropped below $59 a barrel on Thursday as headlines from the cartel’s gathering in Vienna offered conflicting signals about the progress and content of closed-door discussions. The latest indications were that the group agreed to adjust official production targets but it remains to be seen if that will result in real reductions despite prospects for a global oversupply.

“It’s OPEC day and there is a sense of cautious optimism in the air,” PVM Oil Associates analyst Stephen Brennock wrote in a report. “There is a consensus among players that the will deepen supply curbs in order to avert a supply imbalance in the new year.”

Article continues below Advertisement...

A key committee convened by the Organization of Exporting Countries and allies such as Russia recommended cutting overall output quotas by 500,000 barrels a day during the first quarter, according to Russian Oil Minister Alexander Novak said. However, the committee didn’t discuss how the reduction would be distributed among member nations, he said.

West Texas Intermediate for January delivery rose 46 cents to $58.89 a barrel at 11:41 a.m. on the New York Mercantile Exchange after earlier breaching $59 for the first time in 2 1/2 months. For the week, the contract was poised for its steepest gain since June.

for February settlement advanced 45 cents to $63.45 on the London-based ICE (NYSE:) Futures Europe Exchange. The global benchmark crude traded at a $4.90 premium to WTI for the same month.

Disclaimer: Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex are not provided by exchanges but rather by market makers, and so may not be accurate and may differ from the actual market price, meaning are indicative and not appropriate for purposes. Therefore Fusion Media doesn`t bear any responsibility for any losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com


Please enter your comment!
Please enter your name here