Oil prices retreat after OPEC uncertainty

Pumpjack in IshimbayA nodding donkey pump in Bashkortastan, Russia. (Image source: Artur1917/commons)Oil prices fell after a one year high was reported after the Organisation of Petroleum Exporting Countries was trying to agree to cap production for a minimum of six months. 


Because of this, according to Reuters, doubts have formed due to how much that would reduce crude glut. It is unclear how rapidly global oil production could fall into line with demand, even if the OPEC countries fall into line and Russia, a major producer, could curb a steep output cut, said the IEA [International Energy Agency] after these doubts came to the front in October 2016. 

The crude price is estimated to have fallen around 1.4 per cent from the one year high of US$53.73 per barrel to US$52.41 a barrel for Brent crude oil. U.S West Texas Intermediate (WTI) crude fell one per cent to US$50.79 a barrel. 

Most of the world oil officials are at the World Energy Conference in Istanbul, rapidly trying to release statements to stabilise the market cost and be clear on OPEC's production plan. 

Energy ministers from Saudi Arabia and Russia have stated their intent to hold further consultations in the Saudi capital Riyadh after the World Energy Conference. 

OPEC has claimed that they will cut production by 700,000 barrels per day to between 32.5mn to 33mn by their next policy meeting in Vienna on 30 November 2016. However, the US, the world's number one oil producer, will not be part of this reduction plan. 

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