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Oil Slumps as OPEC Struggles to Reach Supply Cut Deal

Published 07/12/2018, 09:54
Updated 07/12/2018, 10:12
© Reuters.

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.

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-Reuters contributed to this story.

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