Investing.com – Crude oil prices settled lower on Tuesday amid ongoing investor uncertainty concerning the outcome of the OPEC meeting this week amid reports suggesting Russia is reluctant to join in extending output curbs beyond March.
On the New York Mercantile Exchange for January delivery fell 12 cents settle at $57.99 a barrel, while on London’s Intercontinental Exchange, lost 13 cents to trade at $63.25 a barrel.
Crude oil added to losses from Monday, as investors continued to fret over outcome of the OPEC meeting slated for Thursday at which the oil-cartel is expected to extend the production-cut agreement beyond March.
Reports suggest, however, that non-OPEC member Russia, is reluctant to join in extending output curbs amid fears that major oil producers, particularly U.S. shale producers, who are not part of the pact will ramp up output to gain market share.
Uncertainty over the outcome of the OPEC meeting comes as a joint OPEC and non-OPEC Committee reportedly recommended extending output cuts through the end of 2018.
Analysts at Goldman Sachs Commodity research, however, expect OPEC to extend output cuts by nine months and warned of downside risks to oil prices should OPEC fail to deliver the extension. The bank said Brent oil prices reflected a $2.5/bbl “nine month extension” premium.
In May, Opec producers agreed to extend production cuts for a period of nine months until March, but stuck to production cuts of 1.2 million bpd agreed in November last year.
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Source: Investing.com
