LONDON: Oil futures fell yesterday after a brief rebound before the weekend, as the market focused firmly on whether Opec is likely to cut output to tackle recent price slumps.
Brent North Sea crude for delivery in January was down 85 cents at $78.56 a barrel in late London deals — hit also by a strengthening dollar that makes the commodity more expensive for holders of rival currencies. US benchmark West Texas Intermediate for December slid 77 cents to $75.05 a barrel.
Prices sank to four-year lows last week following remarks by ministers from the Opec that it is unlikely to slash output at its meeting next week.
But analysts say the losses could push the cartel to cobble together a deal to cut output, despite resistance from some members. Venezuela and Ecuador have called for a cut, while Iran has hinted at a need to reduce output as oil producing countries see their income slide.
However, Saudi Arabia has reduced prices on crude exports to the US market in a move seen by some as an effort to maintain market share as it faces competition from rising shale oil production. Opec’s next meeting is set for November 27 in Vienna. AFP
