Skip to Content

Wednesday, September 18th, 2019

Oil prices dip on doubts OPEC can coordinate output cut

Closed
by October 28, 2016 General

A worker checks the valve of an oil pipe at Nahr Bin Umar oil field, north of Basra, Iraq December 21, 2015. REUTERS/Essam Al-Sudani

A worker checks the valve of an oil pipe at Nahr Bin Umar oil field, north of Basra, Iraq December 21, 2015. Photo: Reuters

Oil prices dipped early on Friday, weighed down by lingering doubts over whether OPEC can coordinate a crude production cut big enough to rein in oversupply that has dogged markets for two years.

International Brent crude oil futures LCOc1 were trading at $50.39 per barrel at 0033 GMT, down 8 cents from their last close.

US West Texas Intermediate (WTI) crude was down 5 cents at $49.67 a barrel.

Traders said there were significant doubts that the Organization of the Petroleum Exporting Countries (OPEC) would be able to rally its members and non-OPEC producers, especially Russia, around a significant cut in output.

“With both Iraq and Iran saying they won’t be part of the cuts for various reasons, and Russia talking freezes not production cuts, the onus will fall on Saudi Arabia to pull any deal together,” said Jeffrey Halley, senior market analyst at brokerage OANDA in Singapore.

“OPEC’s Nov. 30 meeting suddenly seems like a long way away with seemingly half of the group wanting exemptions now,” he added.


Follow The Himalayan Times on Twitter and Facebook

Previous
Next