The Financial Post reports in its Wednesday, Nov. 20, edition that oil fell more than $1 a barrel on Tuesday on concerns about excess global crude supply and limited progress toward resolving the U.S.- China trade dispute that has clouded the outlook for oil demand (all figures U.S.). A Reuters dispatch to the Post reports that
Brent crude futures fell $1.53, or 2.5 per cent, to settle at $60.91 a barrel. West Texas Intermediate (WTI) crude futures lost $1.84 , or 3.2 per cent, to settle at $55.21 a barrel.
Brent has rallied about 15 per cent this year, supported by a pact by the Organization of the Petroleum Exporting Countries and its allies, including Russia to cut combined oil output by 1.2 million barrels per day from Jan. 1.
Russia is unlikely to agree to deepen cuts in oil output at a meeting with fellow exporters next month but could commit to extend existing curbs to support Saudi Arabia, says three unnamed sources.
OPEC and its allies will consider whether to deepen cuts to crude supply when they next meet in December due to worries about weak demand growth in 2020, sources say.
"We expect uneasy talks in December. Russia will not categorically agree to cuts in winter," says a source.
© 2020 Canjex Publishing Ltd. All rights reserved.