Oil prices extend losses as futures for West Texas intermediate and Brent crude fell to the lowest in four years on speculation that the Organization of Petroleum Exporting Countries will resist cutting production.
The group’s main producers such as Saudi Arabia and Kuwait have resisted to calls to cut crude output and offered discounted prices instead.
Saudi Arabia, OPEC’s biggest member, cut down crude exports to approximately 7.51 million barrels a day in September, Barclay’s analysts Miswin Mahesh said in a report yesterday.
Other countries including Ecuador, Venezuela and Libya raised concerns and called for action to prevent the commodity from its downward trend. The 12-member group is scheduled to meet on November 27 in Vienna.
Ecuador and Venezuela will ask member of OPEC to cut excess output, according to an Ecuador official.
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Futures for the North American West Texas Intermediate (WTI) crude for December delivery declined 0.76% to $74.03 a barrel on the New York Mercantile Exchange at the time of writing. While the European Brent crude for January settlement traded 0.23% lower to $78.29 a barrel on the ICE Futures Europe exchange based in London.
Crude Stockpiles
Oil traders are awaiting the weekly stockpiles report from the Energy Information Administration due later in the day. The report is expected to show a fall in crude stockpiles in the US by 1.5 million barrels.
A separate US stockpiles report from the American Petroleum Institute showed that crude inventories in the US, the world’s biggest consumer, climbed 3.7 million barrels in the week ended November 14.
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