Oil falls as high inventories outweigh likely OPEC cuts

Global crude oil prices slipped further today, as swelling inventories depressed sentiment despite widespread expectations that OPEC and Russia would agree some form of production cut next week.

Both international oil benchmarks, North Sea Brent US crude have had their weakest month for more than 10 years in November, losing more than 20 percent as global supply has outstripped demand. So Brent fell 55 cents, to trade at 58.96 dollars a barrel. US crude dropped 75 cents, to 50.70 dollars a barrel.

Surging oil production in the United States, Russia and by members of the Middle East-dominated Organization of the Petroleum Exporting Countries has helped fill global inventories and create a glut in some markets. To rein in the glut, OPEC and its main partner Russia are discussing supply cuts and are due to meet in Vienna on December 6 and 7 to agree production strategy.

Leave a Reply