Situations are not becoming better even though there has been reduction in the number of U. We don’t agree with the position that says the market a few way is going to dictate the price of crude oil.
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Crude oil prices recovered to $42.75 a barrel following the remarks, before being quoted at $41.66.
Flynn said much of the market action appeared technical in nature, with the January Nymex WTI contract moving lower to largely fill the gap left on the continuous futures chart after the expiration of the December contract at $40.35 a barrel last week.
US crude West Texas Intermediate (WTI) dipped 11 cents to $40.43 a barrel as of 0731 GMT, after edging up in earlier trades.
On Monday, oil prices pulled back, releasing the gains made following the reiteration by the Saudi Arabian cabinet of its commitment to work with other oil producers as the strong dollar and the concern over global glut reasserted themselves. This theme is expected to continue Wednesday, with any rebound in price expected to trigger a selloff soon from jittery traders.
Bijan Zanganeh, said on November 21, that he doesn’t expect any change in Organization of Petroleum Exporting Countries’ (OPEC) output policy.
Pressure is growing on OPEC members as the average price that their oil fetches falls to $38.29 a barrel.
The world’s largest holder of proved crude oil reserves has been keeping its oil output high in an effort to maintain global market share against a US fracking boom that’s disrupted oil prices in recent years. Venezuela is urging the group to adopt an “equilibrium price” that covers the cost of new investment in production capacity, Oil Minister Eulogio Del Pino said Sunday.
Brent for January settlement was 10 U.S. cents lower at US$44.56 a barrel on the London-based ICE Futures Europe exchange. US WTI crude traded 30 cents lower at 40.24 per barrel.
As the nuclear agreement isn’t complete, and OPEC typically only confronts problems when necessary, Iran’s return may not come up for discussion on December 4, said Mike Wittner, head of oil market research at Societe Generale SA in NY.
Nymex reformulated gasoline blendstock-the benchmark gasoline contract-fell 1.7% to $1.27 a gallon.
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“The Saudis’ past promises on working for price stability has led to nothing, so it wasn’t surprising there was as much disbelief as initial excitement over today’s announcement”, said John Kilduff, partner at NY energy hedge fund Again Capital.
