Oil prices fall back on scepticism over OPEC cut
In London, Brent North Sea crude for November delivery lost 58 cents to 59.96 dollars per barrel in electronic trading.
By PTI |
LONDON: World crude prices fell back on Tuesday to less than 60 dollars per barrel, as traders cast doubt on the likelihood of an output reduction by the OPEC oil cartel.
New York's main contract, light sweet crude for delivery in November, slid 46 cents to 59.50 dollars per barrel in electronic deals before the official opening of the US market.
In London, Brent North Sea crude for November delivery lost 58 cents to 59.96 dollars per barrel in electronic trading.
Although traders were still concerned about the nuclear test announced by North Korea yesterday, the main issue was growing talk from the Organization of Petroleum Exporting Countries about a potential supply cut, analysts said.
OPEC president dmund Daukoru, who is also Nigeria's oil minister, has proposed to cartel members that they cut their combined daily output by 1.0 million barrels perday (bpd) in a move aimed at shoring up prices.
"OPEC ministers remain divided over whether to formalise the deal," Scden analyst Michael Davies said today.
"It is still not completely certain that the cut in output will come from actual production rater than quotas."
The cartel has held its official output quota to 28 million bpd since June 2005 but prcies have slumped by around one quarter in value since reaching record highs above 78 dollars in July and August. (
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