Oil prices dropped on Friday as market expected that supplies would exceed the demand.
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He also said consultations between OPEC and other oil producers were “important”, adding Russian Federation was ready to continue cooperation in the process. Saudi Arabia previously said that it would use its position in OPEC to support high prices. While the general public expects the cartel to stick to its policy of making 30 million barrels of oil a day, any definite statement can not be made right now.
He assured French President Hollande that moderate rebels will not be effected and air strikes on IS would be intensified and coordination would be better, which makes global alliance against IS, which became skeptical from Tuesday’s Russian warplane shot down incident.
The increased military operations against IS and the crisis between Turkey and Russian Federation, like most confrontations that take place in the Middle East, have raised worries about disruption to oil production and shipments.
Moscow yesterday said retaliatory measures will focus on using its leverage to tighten the screws on Turkey’s economy, including the halting joint economic projects, restricting financial and trade transactions and changing customs duties.
Brent crude settled down 71 cents at $45.46 a barrel, having earlier dropped more than $1 to a session low of $45.00 a barrel.
U.S. benchmark West Texas Intermediate for January stood at $42.02 a barrel compared with $40.39 for the expired December contract one week earlier. Total proved reserves of liquids rose to 39.9 billion barrels, the first time since 1972 that US proved reserves have topped 39 billion barrels. “The market has already priced in a Fed rate increase”.
Futures fell as much as 1.7 percent in NY, trimming this week’s gain to 5.5 percent.
Holdings in gold-backed ETPs fell for a sixth straight day through Wednesday to 1,493.5 tonnes, data compiled by Bloomberg show.
Chevron Corp. (NYSE: CVX) traded down about 0.6%, at $90.74 in a 52-week range of $69.58 to $116.35.
Light, sweet crude for January delivery fell $1.04, or 2.4%, to $42.00 a barrel on the New York Mercantile Exchange.
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Attention will also be on a report by the US Department of Energy later Wednesday on last week s commercial crude stockpiles that will gauge demand in the world s top oil consumer.
