Brent Oil Near $60 as OPEC Seen Resisting Cuts

Brent crude fell close to $60 a barrel as the United Arab Emirates said OPEC will resist output cuts even if prices slump as low as $40. West Texas Intermediate extended its slump from the lowest in more than five years.

Futures slid as much as 2.5 percent in London and 2.7 percent in New York. The market will stabilize itself and the Organization of Petroleum Exporting Countries will wait at least three months before considering an emergency meeting, U.A.E Energy Minister Suhail Al-Mazrouei said. The International Energy Agency cut its 2015 demand forecast by 230,000 barrels a day last week, trimming the estimate for the fourth time in five months.

Oil has lost more than 20 percent since OPEC decided at a meeting in Vienna last month to maintain its production target, resisting calls from members including Venezuela to cut output. Drillers in the U.S., pumping crude at the highest rate in more than three decades, idled the most rigs in almost two years as prices sank further.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.