🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Oil Slumps as OPEC Struggles to Reach Supply Cut Deal

Published 07/12/2018, 09:54
Updated 07/12/2018, 10:12
© Reuters.
LCO
-
CL
-
NG
-
NYF
-
GPR
-

Investing.com - Crude prices were lower on Friday, as the Organization of the Petroleum Exporting Countries (OPEC) struggled to come up with an agreement on cutting oil production.

West Texas Crude oil futures for January slumped 0.50% to $51.23 a barrel as of 4:54 AM ET (9:54 GMT), after falling nearly 3% on Thursday. Meanwhile Brent crude futures, the benchmark for oil prices outside the U.S., dipped 0.45% to $59.78.

The Thursday session of the OPEC meeting in Vienna ended without any decision on cutting oil supply, as Iran seeks an exemption from any cuts due to U.S. sanctions which have already weighed on its exports.

Saudi Arabia’s oil minister Khalid Al Falih said on Friday that he is not confident a deal will be reached.

Oil is down 30% since October amid worry over increased supply as global demand slows.

Oil output from the world's biggest producers - OPEC, Russia and the United States - has increased by 3.3 million barrels per day (bpd) since the end of 2017, to 56.38 million bpd, meeting almost 60 percent of global consumption.

The output is largely due to the U.S., which exported more crude oil and fuel than it imported for the first time in its record, according to data released by the EIA on Thursday.

Investors are also looking ahead to the weekly U.S. Baker Hughes oil rig count, which is a leading indicator of demand for oil products, which comes out later in the session.

In other energy trading, Gasoline RBOB Futures fell 1.81% to $1.4156 a gallon, while heating oil decreased 1.25% to $1.8352 a gallon. Natural gas futures slipped 1.09% to $4.280 per million British thermal units.

-Reuters contributed to this story.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.