Oil is cheaper on Monday after the talks between the experts of the OPEC countries, and consultations with the cartel and other oil-producing States on the issue of harmonization of the specific parameters of the agreement on collective decline ended inconclusively.
On the morning of December futures for Brent oil at the London ICE Futures exchange at 7:55 Moscow time has fallen in price on 0,5% – to 49.46 dollars per barrel, reports “Interfax”.
Quotes of WTI oil futures for December trading on the new York Mercantile exchange (NYMEX) by this time dropped by 0.4% to 48.51 per barrel.
Russian Urals oil is trading at $ 47 per barrel for the week it fell 3.5%.
Negotiations of representatives of the countries – oil producers within and outside OPEC, held in Vienna, led to the negotiation of a consensual plan of reducing production.
Following the meeting decided to hold the next consultation at the same level before the official Ministerial meeting of States members of the cartel on November 30. By the time expected to be updated and offer their data for possible freezing or reducing oil production.
“It was a lot of talk, but nobody agreed. This has prompted the oil market to decrease”, – said the Agency Reuters, senior market analyst at brokerage OANDA in Singapore Jeffrey Halley.
We will remind, the OPEC countries have agreed in principle at an informal meeting in Algeria, to reduce production to 32.50-33 million barrels per day, that is, to reduce it 200-900 thousand barrels per day. However, while none of the countries have not announced exactly how much she is willing to reduce production.
The main stumbling block for reaching an agreement on quota levels is now the reluctance of Iraq and Iran to participate in production cuts. In addition, Baghdad and Tehran continue to disagree with the assessments that should be used as a starting point for the calculation of country quotas, and give their figures, which are higher.
OPEC Secretary General Mohammed Barkindo, whose statement posted on the organization’s website, warned the country of the dire consequences that a consensus could not be reached. “If not implementing the Algiers agreement, this will delay the process of rebalancing the market, which will be followed by further deterioration of the financial situation and the extension to a third year of reduced investment, which is unprecedented,” said Barkindo.
Additional pressure on the oil quotes have the data the us oil service company Baker Hughes growth in the number of drilling rigs in the United States.