Crude prices were seen trading near a four-year low on Wednesday after preliminary talks over oil supply cuts failed to deliver an agreement before the OPEC meeting scheduled for tomorrow.
Futures for the North American West Texas Intermediate (WTI) crude for January delivery added 0.04% to 74.13 per barrel on the New York Mercantile Exchange at the time of writing. While the European benchmark Brent crude for January settlement added 0.08% to $78.39 per barrel on the ICE Futures Europe exchange based in London.
“If OPEC does not cut production, then Brent would come under further pressure,” potentially falling to $65 to $70 a barrel, Abhishek Deshpande, oil market analyst at Natixis SA in London, said in an e-mail. “Market fundamentals are weak. Supply growth is outpacing demand growth.”
Preliminary talks between Russia, Saudi Arabia, Venezuela and Mexico in Vienna regarding the commodity’s falling trend, resulted in no agreement on Tuesday, according to Rafael Ramirez, Venezuela’s foreign minister. Saudi Arabia’s representative and oil minister said the falling oil prices will stabilize and there’s no need for a cut in the commodity’s output.
A report from BP Plc showed that non-OPEC members Russia and Mexico, along with OPEC-members Saudi Arabia and Venezuela pumped 27.8 million barrels a day last year, while global output came in at 86.8 million a day.
Free Reports:
Crude inventories in the US, the world biggest crude consumer, fell 2.8 million in the week ended Nov 21, according to a report from the American Petroleum Institute.
A separate report from the Energy Information Administration due later in the day is expected to show a rise in crude stockpiles by 2.2 million barrels last week, while gasoline stockpiles may increase by 1.364 million barrels.
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