Tuesday 25 November 2014

Oil Keeps Falling As OPEC Fails To Act

Global oil prices continued their southern journey on reports that Organisation of the Petroleum Exporting Countries (Opec) cartel is unlikely to agree on any cuts at a key output meeting this week.

On Tuesday in Asian trade, US benchmark West Texas Intermediate for January delivery was down three cents at $75.75 while Brent crude for January fell 9c to $79.59 in mid-morning trade.

Opec will hold one of its toughest and most significant meetings in recent years on Thursday, with members under pressure to address falling prices, which have sunk 30 percent since June.

Opec's poorer members, led by Venezuela and Ecuador, have called publicly for a cut in output, while Iran has also hinted at the need for a reduction.

But the cartel's Gulf members, led by kingpin Saudi Arabia, are rejecting such calls unless they are guaranteed market share in the highly competitive arena, according to analysts.

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