por admin » Jue Dic 06, 2018 5:06 am
Oil prices slide 3 percent as Saudi energy minister proposes a smaller-than-expected output cut
PUBLISHED 8 HOURS AGO UPDATED 5 MINS AGO
REUTERS
OPEC is set to in Vienna, Austria, later on Thursday to decide its production policy.
Since early October, crude oil has lost around 30 percent of its value amid surging supply and concerns that an economic downturn will erode fuel demand.
Oil prices snapped lower Thursday morning after Saudi Arabia's energy minister said that a cut of 1 million barrels per day would be enough for OPEC and allied oil producers.
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International Brent crude oil futures were at $60.78 per barrel at 09:35 GMT, down 1.22 percent from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $52.16 per barrel, down 1.3 percent.
Traders said oil prices were being weighed down by weak global financial markets, which saw stock markets tumble on Thursday.
Since early October, crude oil has lost around 30 percent of its value amid surging supply and fears that an economic downturn will erode fuel demand.
"A massive liquidation in long positions by money managers has dampened market confidence on oil prices considerably," said Benjamin Lu of Singaporean brokerage Phillip Futures.
The Organisation of the Petroleum Exporting Countries (OPEC) is meeting at its headquarters in Vienna, Austria, on Thursday to decide its production policy.
Led by Saudi Arabia, OPEC's crude oil production has risen by 4.1 percent since mid-2018, to 33.31 million barrels per day (bpd).
Oil output from the world's biggest producers - OPEC, Russia and the United States - has increased by a 3.3 million bpd since the end of 2017, to 56.38 million bpd, meeting almost 60 percent of global consumption.
The increase alone is equivalent to the output of major OPEC producer United Arab Emirates.
Russia, a major oil producer but not a member of OPEC, will meet with the producer cartel on Friday to discuss production levels, and it is widely expected that a supply cut will be agreed.
"Markets...believe the production cut deal will be in range of 1-1.3 million bpd," ANZ bank said on Thursday.