Oil Falls on Output Cut Scepticism, OPEC and Russia Output Rise

تم نشره في Tue 6 December / Dec 2016. 01:00 AM
  • Oil Barrels Prepared - (Reuters)

NEW YORK — Oil prices on Tuesday ended lower for the first time since OPEC agreed on Nov 30 to cut output, as data showing record high production in the producer group fed scepticism that it would be able to reduce supplies.

Brent futures slid USD1.01 to settle at USD53.93 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 86 cents to USD50.93 per barrel. Crude had surged more than 15 per cent in the four sessions since the Nov. 30 OPEC meeting.

"Prices fell for the first day in five in reaction to news that OPEC's output hit a record high last month," said James Williams, president of energy consultant WTRG Economics in Arkansas.

OPEC's output set another record high in November, rising to 34.19 million barrels per day (bpd) from 33.82 million bpd in October, according to a Reuters survey.

Oil prices pared losses slightly after inventory data released late Tuesday from the American Petroleum Institute showed U.S. crude stocks dropped more than expected last week despite a hefty build of 4 million barrels in Cushing, Oklahoma.