MOSCOW, November 27 – RIA Novosti. World oil prices falling amid fears of investors that OPEC will not cut production rates, according to the auction.
As of 8.37 MSK January futures price for North Sea Brent crude oil mixture was reduced by 2.37% to 76.52 dollars per barrel. Cost of January futures for light WTI crude oil fell by 1.87% and amounted to 72.73 dollars per barrel.
Investors fear that OPEC will not reduce despite the overabundance of demand. In particular, Reuters reported with reference to the three delegates meeting that reduce oil production quotas will not happen. OPEC delegates said that, most likely, the organization will not take any steps in relation to the production level, since Russia is not going to cut it. On Wednesday, the head of “Rosneft” Igor Sechin, in an interview with Bloomberg said that the drop in oil prices below $ 60 a barrel will not make the Russian Federation to reduce oil production.
OPEC meeting will be held in Vienna on November 27, the country must make a decision, whether they will go to reduce production at the background of deteriorating outlook for global oil consumption and a significant increase in production in the United States. It will be one of the most important meetings of the organization in recent years, since June, oil prices have fallen by about a third. Venezuela said it was ready to cut oil production if OPEC decides. Representatives of Libya and Venezuela agreed with this initiative. Iran has also said it will support the reduction of prices in the course of the meeting.
However, Saudi Oil Minister Ali al-Naimi said Wednesday it expects oil “finally stabilizes itself.” Investors interpreted this statement as a rejection of the reduction in oil production. If OPEC decides to maintain the level of production, it would mean a price war in which Saudi Arabia and other Gulf countries will be able to have a confrontation at the expense of cash reserves. However, for other countries, such as Venezuela or Iran, it will be a big test, Reuters reported.
«Some OPEC members believe that it is time to protect the market share … All market experts believe that the market right now there is oversupply, which will increase in the next year “- leads the agency Minister Bijan Namdar Iran’s oil Zangane.
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