Oil prices fall as OPEC meeting remains ‘clouded by uncertainty’

Andrew Cummings
November 30, 2018

These are the data of trading of the NY stock exchange on Thursday, November 29.

The Russian Energy Ministry held a meeting with the heads of domestic oil producers on Tuesday, before a gathering in Vienna of OPEC and its allies on December 6-7.

A director with Tortoise, Nick Holmes, who manages a portfolio in energy that is over $16 billion, this report shows an increased build in relation to the market consensus on crude stockpiles in the US.

Prices in November were down almost 22 percent so far, set for the biggest monthly fall since the depths of the financial crisis in 2008.

"Furthermore, our partners are helping us by introducing all these unlawful restrictions and violating principles of the global trade, because the whole world sees the dollar monopoly is unreliable; it is risky for many, not only for us", he said. Oil has remained in an oversold territory this month, and seesawed near the US$50 threshold this week - a key budgetary marker for shale drillers.

Another factor that would hold prices down is the rise in U.S. inventory.

He was also reported to have said that Russia's 2019 oil output is expected at the same level as this year but could be adjusted, depending on a deal between OPEC and non-OPEC members.

The West Texas Intermediate for January delivery fell 1.27 US dollars to settle at 50.29 dollars a barrel on the New York Mercantile Exchange, while Brent crude for January delivery fell 1.72 dollars to close at 58.76 dollars a barrel on the London ICE Futures Exchange. The contract gained 2.3 per cent to close at US$51.45 on Thursday. Volumes were 49% above the 100-day average. The cost of a barrel of Brent crude is about $ 59. The global benchmark crude traded at an $8.45 premium to WTI. Putin also said that he was comfortable with an oil price of 60 USA dollars, which is "balanced and fair". While Saudi Arabia leads the Opec bloc, Russian Federation is the informal leader of the non-Opec bloc of producers. This is stark contrast to his statement two weeks ago, when Putin had said that Russian Federation would be okay with a $70 per barrel price.

The earlier Thursday price dip had built on a Wednesday slide that followed data showing USA crude inventories rose for a 10th straight week and remarks by Putin, who said oil at $60 a barrel was “absolutely fine” but also that he was willing to work with Saudi Crown Prince Mohammed bin Salman toward stabilizing the market. That's the longest rising streak since November 2015.

He said at the time that supply could exceed demand by as much as 1 million barrels per day (bpd), or 1 percent of global demand, suggesting that OPEC and its allies may try to reduce production by that amount.

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