Crude oil losing positions before OPEC meeting

Crude oil price fell significantly, recording a decline of 3.96% to 46.46 USD per barrel. It was the most significant decrease in the raw material from two months ago, after Saudi Arabia said it would withdraw from talks on freezing oil production on Monday between the non-OPEC countries.

Today, energy ministers of Algeria and Venezuela will try to conclude an agreement with Russia in Moscow to cut oil production. OPEC offers reduced production by 600,000 barrels per day to countries outside the cartel. Russian Energy Minister Alexander Novak said late last week that the Russian Federation is ready to participate in freezing production, but nothing more than that.

Minister of Energy of Saudi Arabia Khalid al-Falih said that his country will take part in negotiations with producer countries outside OPEC, just after having completed the cartel meeting in Vienna on November 30. If they reach an agreement to reduce production, it will be the first in last 8 years.

Currently the largest OPEC members – Saudi Arabia, Iraq and Iran, remain divided over how to allocate future quotas. One of the members of the cartel Libya has already indicated he will not support the agreement because of the poor economic situation of the country. The purpose of Tripoli to return to its level of production of 1.16 million barrels per day, which were reached before the Arab Spring. Libya currently produces around 600,000 barrels per day. In turn neighbor country, Algeria supported the reduction of production by a total of 1.1 million barrels per day.

more recommended stories