Breaking News
0

Oil Tumbles 5% on Russian Silence Over OPEC; Huge U.S. Draw Little Help

CommoditiesDec 06, 2018 17:06
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

Investing.com - At any other time, a 7-million-barrel weekly drawdown in U.S. crude inventories would have sent crude prices surging. But not when the Russians are maintaining an elegant silence on production cuts that has OPEC, and oil-dependent economies all over, at their mercy.

U.S. WTI was down $2.68, or 5.1%, at $50.21 per barrel by 11:33 AM ET (16:33 GMT) as OPEC awaited to hear from Russia on what the cartel should announce at its meeting in Vienna as target for production cuts aimed at propping up crude prices.

Brent fell $2.89, or 4.7%, to $58.67.

Crude stockpiles in the United States plunged last week for the first time in 11 weeks, the Energy Information Administration said, announcing a drawdown of 7.3 million barrels in the week ended Nov. 30, compared with analysts’ expectations for a decrease of just 942,000 barrels.

"It's a bullish draw number but the market's attention is totally on OPEC," said Tariq Zahir, managing member at Tyche Capital Advisors, an oil-focused fund in New York. "The Russians are looking like they don't want to give in to a big cut. There's also a huge risk-off on Wall Street that's adding to the heat on oil."

Reuters quoted two sources as saying OPEC had a tentative production-cut deal, but needed Russia's concurrence and contribution to the plan. Russia's Energy Minister Alexander Novak flew back to Moscow from Vienna to get President Vladimir Putin's assent and will return to the Austrian capital on Friday with a decision, reports said.

The Dow's plunge added to the weight on oil as equity markets tanked after the arrest of a top executive at Chinese company Huawei Technologies sparked fresh worry over Sino-U.S. trade tensions.

Oil Tumbles 5% on Russian Silence Over OPEC; Huge U.S. Draw Little Help
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments
Han Seng Kong
HanSeng Dec 07, 2018 6:16
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The answer to the strangle- hold  of OPEC oil supply , and the US over trade ,finance , and semi-conductors and high technologies we need is  nuclear reactor power stations , and wind power . That is apparently the call of France. We see it as a correct call. In the response to the US weaponization of trade , strangle-hold of finance, the EU has no option just now but beyond the short-term ,it should work more closely with China. China has no history of weaponization of trade or, finance. Reading Chinese history it has never done so.. The potential opportunities between China and EU is on a continental scale. Why must the EU be shackled by decisions made in he US that is damaging to the people of the EU? The EU should build its own case to further its peoples interest. The Chinese may be rude and uncouth, but at least they are loyal and faithful people. Read your history.
Reply
0 0
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email