Home / Business / Brent Extends Drop to 4-Year Low as OPEC Seen Resisting

Brent Extends Drop to 4-Year Low as OPEC Seen Resisting

Brent wanton extended waste below
$80 a tub amid signs that OPEC stays reluctant to reduce
output to palliate a supply glut. West Texas Intermediate fell
before register data.

Brent slid as most as 2.1 percent to a lowest since
September 2010. Speculation of a cost fight within OPEC “has no
basis in reality,” Saudi Arabia Oil Minister Ali Al-Naimi said
yesterday. Slumping oil prices simulate a flourishing accord among
traders and investors that OPEC will say output, Goldman
Sachs Group Inc. said. Crude stockpiles in a U.S. rose for a
sixth week, a Bloomberg News consult showed before government
data today.

“The marketplace is looking for any signs of OPEC production
cuts though it doesn’t demeanour like Naimi is in a precipitate to do that,”
said Phil Flynn, comparison marketplace researcher during a Price Futures
Group in Chicago. “The marketplace is only contrast OPEC’s resolve.
It’s full speed forward until something changes.”

Brent for Dec settlement, that expires today, dropped
$1.29, or 1.6 percent, to $79.09 a tub during 9:02 a.m. New York
time on a London-based ICE Futures Europe sell after
falling to $78.71. The some-more active Jan agreement was down
$1.35 during $79.77. The volume of all futures traded was about 27
percent above a 100-day normal for a time of day.

WTI for Dec smoothness declined $1.04, or 1.4 percent,
to $76.14 a tub on a New York Mercantile Exchange. It lost
76 cents to $77.18 yesterday, a lowest tighten given October
2011. Volume was about 52 percent above a 100-day average.
Brent traded during a reward of $2.88 to WTI on ICE, a narrowest
in roughly a month.

Bear Market

Oil sank into a bear marketplace final month as heading OPEC
members resisted calls to cut prolongation and instead reduced
export prices to a U.S., where outlay has climbed to the
highest turn in some-more than 3 decades. Venezuela, Libya and
Ecuador have asked for movement to forestall wanton from falling
further. The organisation is scheduled to accommodate Nov. 27 in Vienna.

“Saudi oil process has remained consistent for a past few
decades and it has not altered today,” al-Naimi pronounced during a
conference in Acapulco, Mexico, in his initial open comments
since wanton plunged into a bear market. “We wish fast oil
markets and solid prices, since this is good for producers,
consumers and investors.”

Saudi Output

Saudi Arabia’s prolongation slid 69,900 barrels a day to a
seven-month low of 9.603 million in October, OPEC pronounced in its
monthly news yesterday. The 12-member group, that supplies
about 40 percent of a world’s oil, pumped 30.253 million
barrels a day, OPEC said, citing information formed on estimates from
sources including analysts and media organizations. That exceeds
its common aim of 30 million set in Jan 2012.

“People commend that you’re doubtful to see a cut in
this Nov. 27 OPEC meeting,” and that’s pushed prices reduce in
the final several days, Jeff Currie, conduct of line research
at Goldman Sachs Group Inc. in New York, pronounced currently in an
interview on Bloomberg Television’s “On a Move” with
Jonathan Ferro. “When we demeanour during U.S. shale production, it is
continuing to warn to a upside.”

U.S. wanton inventories substantially stretched by 1.05 million
barrels in a week finished Nov. 7, according to a Bloomberg
survey before information from a Energy Information Administration.
Supplies formerly rose to 380.2 million, a top since
July 4.

Gasoline stockpiles are projected to have climbed by
200,000 barrels, a consult shows. Distillate fuels, which
includes heating oil and diesel, are foresee to have declined
by 1.5 million.

To hit a contributor on this story:
Moming Zhou in New York at
[email protected]

To hit a editors obliged for this story:
David Marino at
[email protected]
Stephen Cunningham, Charlotte Porter

Article source: http://www.businessweek.com/news/2014-11-13/brent-extends-drop-to-4-year-low-as-opec-seen-resisting

Scroll To Top