Brent for December settlement dropped 73 cents, or 1.4 percent, to $52.41 a barrel on the London-based ICE Futures Europe exchange on Tuesday. In Tuesday morning trading, light profit-taking saw a barrel of benchmark NY crude fall 4 cents to $51.31 a barrel while Brent, the global standard, was down 18 cents at $52.96 a barrel.
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He added that a cut or production freeze was the best option to stabilize oil prices.
Goldman Sachs said in a note to clients on Tuesday that despite a production cut becoming a “greater possibility”, markets were unlikely to rebalance in 2017.
Oil held above US$50 a barrel after OPEC said it had firm commitments from Russian Federation that the world’s largest energy exporter is willing to participate in a coordinated effort to curb oil production.
Global production rose by 200,000 barrels a day in September to 97.2 million barrels a day.
Oil production from OPEC nations hit a record last month, according to an worldwide energy group, highlighting the cartel’s challenge in trimming output to drive up prices.
And even with the planned cut, OPEC supply could continue to outstrip demand. OPEC estimates that its current production stands at 33.24 million bad.
Sechin is known for his hostility toward OPEC, and repeatedly says the cartel no longer controls the global oil market. “If OPEC sticks to its new target, the market’s rebalancing could come faster”, the International Energy Agency said in a report issued Tuesday.
Currently, OPEC has a tentative agreement to limit oil output to less than 33 million barrels a day.
OECD commercial inventories fell by 10 million barrels to 3.092 billion barrels in August, the first inventory decline since March. News stories displayed here appear in our category for Business and are licensed via a specific agreement between LongIsland.com and The Associated Press, the world’s oldest and largest news organization.
In a September 5 statement with his Saudi counterpart, Russian Oil Minister Alexander Novak said that the onus was on them, as two countries that combine to meet about 20 percent of the global demand for crude oil, to coordinate on ways to address widespread volatility in oil prices.
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While the IEA did not make any predictions on the chances of OPEC following through on its pledge, its report implied that all oil price bets are off should OPEC fail to deliver.
